What is a characteristic of workers' compensation as a form of insurance?

• A. Focuses solely on worker's physical health
• B. Addresses work-related injuries and illnesses on a no-fault basis
• C. Requires proof of negligence
• D. Excludes occupational diseases

Answer: (B)

Workers' compensation is designed to provide support for employees who sustain injuries or illnesses as a direct result of their work activities. One of its defining characteristics is that it operates on a no-fault basis, which means that the injured worker does not have to prove negligence on the part of their employer to receive benefits. This approach simplifies the claims process and ensures that workers can access necessary medical care and income replacement without the burden of litigation over fault.

By addressing work-related injuries and illnesses in this manner, workers’ compensation ensures timely support for employees, promotes recovery, and encourages a safe working environment. This no-fault system allows for a more efficient mechanism to handle claims, benefiting both employers and employees.