What is the primary purpose of worker’s compensation insurance?

The primary purpose of worker’s compensation insurance is to provide benefits to employees who are injured or become ill as a result of work-related activities. This includes coverage for medical expenses, rehabilitation costs, and partial wage replacement for the time an employee is unable to work due to their injury or illness. It is designed to assist workers regardless of fault, ensuring that they receive timely assistance and support during their recovery.

This system not only helps employees get back on their feet but also promotes workplace safety and health by encouraging employers to implement preventive measures. Additionally, worker's compensation protects employees from the financial hardships that can arise from work-related injuries, allowing them to focus on their recovery instead of worrying about out-of-pocket medical expenses or lost income.

In contrast, other options like covering general liability claims or protecting employers from lawsuits do not pertain to the focus of worker's compensation, which is centered on the well-being of the employee. Similarly, covering lost wages during a job search is not relevant to the operation of worker's compensation, as the insurance specifically aims to address issues arising from workplace incidents rather than unemployment situations.