What is the primary purpose of the workers' compensation insurance policy for employers?

The primary purpose of a workers' compensation insurance policy is to protect employers against claims arising from employee injuries. This type of insurance provides coverage for medical expenses, rehabilitation costs, and lost wages for employees who are injured on the job, ensuring that they receive the necessary support while also protecting the employer from potential lawsuits related to workplace injuries.

By having this insurance in place, employers can manage the financial risks associated with workplace injuries, which can be significant. It creates a no-fault system, meaning that employees can receive benefits without needing to prove negligence on the part of the employer. This not only facilitates quicker recovery for the injured worker but also helps to maintain a stable and safe work environment.

The other options relate to different aspects of employee welfare and business management but do not directly encapsulate the main goal of workers' compensation. Workers' compensation is specifically designed to address injuries and illnesses that occur as a direct result of the job, distinguishing it from general health insurance or broader business liability coverage.