Which type of insurance provides coverage for injuries to employees while performing work-related duties?
Correct Answer
D) Workers' compensation insurance
Workers' compensation insurance specifically covers medical expenses and lost wages for employees injured on the job
Why This Is the Correct Answer
Workers' compensation insurance is specifically designed to provide mandatory coverage for employees who suffer work-related injuries or illnesses. This insurance covers medical expenses, rehabilitation costs, lost wages, and disability benefits for employees injured while performing their job duties. It's legally required in most states and protects both employees and employers by providing a no-fault system for workplace injury compensation.
Why the Other Options Are Wrong
Option A: Commercial auto insurance
Professional liability insurance (errors and omissions) covers claims arising from professional mistakes, negligent acts, or failure to deliver promised services. It protects against lawsuits related to professional services, not physical workplace injuries to employees.
Option B: General liability insurance
Commercial auto insurance covers vehicle-related incidents involving company vehicles, including accidents and liability. While it may cover employees injured in vehicle accidents, it doesn't provide comprehensive coverage for all work-related employee injuries.
Option C: Professional liability insurance
General liability insurance covers third-party bodily injury and property damage claims against the business, such as customers slipping on premises. It does not cover injuries to the company's own employees during work activities.
Memory Technique
Remember 'Workers' Comp = Workers' Coverage' - it's the only insurance type that specifically mentions 'workers' and is designed exclusively for employee workplace injuries.
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