What is the main function of workers’ compensation insurance?

The primary function of workers’ compensation insurance is to provide medical benefits and wage replacement to employees injured while performing their job duties. This type of insurance is designed to support workers by covering the costs associated with medical treatment for job-related injuries and offering financial assistance through wage replacement when they are unable to work due to those injuries.

Workers' compensation is beneficial for both employees and employers. For employees, it ensures they have access to necessary medical care without needing to prove fault, allowing them to focus on their recovery. For employers, it reduces the risk of lawsuits related to workplace injuries since employees typically give up the right to sue in exchange for workers' compensation benefits. This creates a more stable and predictable working environment.

The other options do not accurately reflect the main purpose of workers’ compensation insurance. Liability coverage for accidents pertains more to general liability insurance rather than workers’ compensation. Coverage for equipment damages during construction and protection against natural disasters relate to different types of insurance, specifically property and casualty insurance, rather than the specific aim of workers’ compensation.