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

What is the primary purpose of workers' compensation insurance?

1. To protect employers from lawsuits

2. To provide temporary income for injured workers

3. To cover medical expenses for victims of crime

4. To insure property against theft

The correct answer is: To provide temporary income for injured workers

The main objective of workers' compensation insurance is to provide financial support and temporary income for employees who are injured or become ill as a result of their job duties. This system allows workers to receive compensation for medical expenses and lost wages without needing to prove fault or negligence, creating a more efficient and effective process for both employees and employers. When employees are covered by workers' compensation, they can access benefits that help them sustain their livelihoods while they recover from their injuries, such as a percentage of their salary and coverage for medical bills. This safety net is crucial in maintaining the well-being of workers and their families in the event of workplace incidents. Other potential options may involve elements of liability or property protection, but they do not capture the essence of workers' compensation insurance, which is specifically designed to address the needs of injured workers and facilitate their recovery and return to work.