What does workers' compensation insurance cover?

Workers' compensation insurance is designed specifically to provide financial support and benefits for employees who sustain injuries or become ill as a direct result of their job responsibilities. It covers medical costs associated with treating work-related injuries, ensuring that affected employees receive the necessary medical care without the burden of out-of-pocket expenses. Additionally, it compensates workers for lost wages resulting from time off work due to their injury or illness, enabling them to maintain some level of financial stability during their recovery period. This insurance serves as a crucial safety net that protects both employees and employers by offering a structured way to handle workplace injuries and associated costs.

The other options, while addressing important aspects of workforce management and employee benefits, do not pertain to workers' compensation. Unpaid leave for family care relates to family leave policies, retirement income is concerned with pension plans or retirement savings, and continuation of health coverage typically refers to benefits such as COBRA, which provides a means for employees to maintain their health insurance after leaving a job. None of these options directly address the core function of workers' compensation insurance.