What is the primary purpose of workers compensation insurance?

The primary purpose of workers' compensation insurance is to provide financial support to workers who are injured or become ill as a result of their job. This type of insurance aims to ensure that employees who suffer from work-related injuries receive necessary medical care and financial compensation for lost wages due to their inability to work. It is designed to offer benefits without the need for the employee to prove fault or negligence, thus protecting both employees and employers from potential lawsuits related to work-related injuries.

While it’s true that workers’ compensation can cover medical expenses related to these injuries and can also provide compensation for temporary disabilities, the overarching goal is to facilitate payment to the worker who is injured on the job. This assistance can help workers recover and return to work more effectively, which is central to the purpose of the insurance system.

The other options, which include life insurance benefits and retirement benefits, do not accurately represent the focus of workers' compensation. Life insurance and retirement benefits fall under different forms of insurance and financial planning that are not directly related to work-related injuries or conditions.