What is the primary purpose of workers' compensation insurance?

• A. To provide unlimited coverage for injuries
• B. To deny all claims unless negligence can be proven
• C. To ensure workers receive medical benefits and compensation for lost wages
• D. To fund companies' administrative costs

Answer: (C)

The primary purpose of workers' compensation insurance is to ensure that employees receive necessary medical benefits and compensation for lost wages resulting from work-related injuries or illnesses. This system is designed to protect workers by providing financial support and covering medical expenses while they are unable to work due to their injuries. By offering these benefits, workers' compensation promotes recovery and enables employees to return to work without the burden of financial stress.

The essence of workers' compensation is to create a no-fault system where employees are entitled to benefits regardless of negligence, fostering a safer workplace and reducing litigation over work-related injuries. This approach balances the needs of employees for medical care and compensation with the interests of employers to limit liability.