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

What type of insurance program offers income to workers injured on the job?

1. Liability Insurance

2. Health Insurance

3. Workers' Compensation Insurance

4. Disability Insurance

The correct answer is: Workers' Compensation Insurance

Workers' compensation insurance is designed specifically to provide financial support to employees who suffer injuries or illnesses as a direct result of their work. This type of insurance ensures that injured workers receive a portion of their wages while they are unable to work due to their injury, as well as coverage for medical expenses related to the injury. This program is vital because it helps protect both employees and employers; workers can receive necessary benefits without having to prove fault, and employers benefit from limited liability for work-related injuries. The coverage typically includes payment for medical expenses, rehabilitation costs, and compensation for lost wages, making it a comprehensive solution for workplace injuries. In contrast, liability insurance primarily protects against legal claims from third parties, health insurance covers a broad range of healthcare needs unrelated to employment, and disability insurance often provides income for non-work-related injuries or illnesses. These distinctions clarify why workers’ compensation is the appropriate choice for addressing income support for job-related injuries.