Future Business Leaders of America (FBLA) Business Law Practice Exam

What is commonly covered by workers' compensation insurance in case of an employee injury?

1. Loss of income from outside jobs

2. Medical expenses related to the injury

3. Pain and suffering claims

4. Permanent loss of benefits

The correct answer is: Medical expenses related to the injury

Workers' compensation insurance is designed to provide benefits to employees who suffer work-related injuries or illnesses. One of the primary coverage areas is medical expenses related to the injury. This includes costs associated with hospital stays, surgeries, doctor visits, physical therapy, medication, and any necessary rehabilitation. The intent of this coverage is to ensure that employees receive prompt medical treatment without the burden of out-of-pocket expenses that could impact their financial stability while they recuperate. The other options listed do not align with what workers' compensation typically covers. Loss of income from outside jobs is not included, as workers' compensation only addresses wages lost as a result of employment-related injuries. Pain and suffering claims are generally not compensated under workers' compensation policies, as this system is based on a no-fault principle that does not account for non-economic damages. Lastly, permanent loss of benefits does not accurately reflect the nature of coverage, as benefits could be reviewed and adjusted following an injury, rather than permanently lost without compensation. By focusing on medical expenses, workers' compensation aims to support the recovery of employees and foster their return to work as soon as possible.