What does workers' compensation insurance primarily cover?

Workers' compensation insurance primarily covers employee injury or illness that occurs as a result of their work duties. This specialized form of insurance is designed to provide financial support to employees who sustain injuries or develop medical conditions connected to their job, ensuring they receive necessary medical care and compensation for lost wages during recovery. The essence of workers' compensation is to protect not only the workers but also employers, as it provides a streamlined process for addressing workplace injuries while limiting litigation.

In contrast, while other options may address aspects of employee well-being or costs associated with employment, they do not encompass the primary focus of workers' compensation insurance. For instance, coverage for workplace property damage pertains to liabilities associated with damaged equipment or infrastructure, which is distinctly outside the purview of workers' compensation. Health benefits for employees generally refer to health insurance plans that cover a range of medical services unrelated to work-related injuries. Similarly, retirement funds involve financial planning for employees after they cease working and are not linked to immediate injury or illness resulting from job duties. Therefore, the primary role of workers' compensation is to safeguard employees against the financial impacts of work-related health issues.