What is Workers' Comp?

• A. A plan that provides retirement benefits to employees
• B. An optional life insurance policy
• C. A system of benefits provided by law to employees who experience work-related injuries or occupational diseases, generally regardless of fault. It is designed to protect both employees and employers: employees receive financial and medical support, while employers are shielded from potentially costly lawsuits.
• D. A plan for personal accident coverage

Answer: (C)

Workers' compensation is a system of benefits mandated by law for employees who are injured on the job or develop an occupational disease. It provides medical care and wage replacement without the worker having to prove fault, and it’s designed to protect both workers and employers: workers get needed medical treatment and income while they recover, and employers are shielded from most lawsuits arising from workplace injuries. Benefits typically include medical treatment, disability payments, vocational rehabilitation, and survivor benefits. This is different from retirement plans, life insurance, or personal accident policies, which are not tied to work-related injuries and aren’t governed by workers' compensation laws.