West Virginia Adjusters Practice Exam

What is the primary purpose of workers' compensation insurance?

1. Cover medical costs of non-employees injured on business premises

2. Provide tax deductions for businesses

3. Provide financial support and medical care to employees injured in the course of employment

4. Replace commercial property insurance

The correct answer is: Cover medical costs of non-employees injured on business premises

The primary purpose of workers' compensation insurance is to provide financial support and medical care to employees injured in the course of employment. This insurance is designed to protect workers who sustain injuries or illnesses as a direct result of their job duties, ensuring they receive necessary medical treatment and financial assistance while they recover. Workers' compensation typically covers a wide range of costs associated with work-related injuries, including hospital bills, rehabilitation expenses, and, in many cases, a portion of lost wages. By offering these benefits, workers' compensation acts as a safety net for employees, allowing them to focus on their recovery without the added stress of medical costs or financial instability. The other options do not align with the primary function of workers' compensation. Covering medical costs for non-employees is not its purpose; that concern typically falls under general liability insurance. Tax deductions for businesses are related to tax law rather than an aim of workers' compensation. Lastly, replacing commercial property insurance is irrelevant, as workers' compensation does not pertain to property but specifically to employee injuries and illnesses.