Which statement best describes workers' compensation?

• A. It is a form of insurance paid by the employer providing cash benefits to workers injured or disabled in the course of employment.
• B. It is a government welfare program for all citizens.
• C. It is a private health plan purchased by employees.
• D. It is a retirement savings program for retirees.

Answer: (A)

Workers’ compensation is an employer-paid insurance program that provides cash benefits and medical care to workers who are injured or disabled on the job. It operates as a no-fault system, meaning benefits are provided regardless of who was at fault for the injury, and typically include wage replacement, medical expenses, rehabilitation, and sometimes survivor benefits. The program is usually required by state law and funded by employers (or state funds), rather than being a government welfare program for all citizens, a private health plan purchased by employees, or a retirement savings program. This combination of employer funding and job-related coverage is what makes workers’ compensation distinct and protective for workers facing work-related injuries.