In the context of small business risk management, which insurance covers workers injured on the job?

• A. Workers' compensation.
• B. Casualty insurance.
• C. Property insurance.
• D. Life insurance.

Answer: (A)

When employees are injured on the job, the coverage that handles their medical care and lost wages is workers’ compensation. This program provides medical treatment, partial wage replacement, and rehabilitation benefits, and it’s designed to get workers back on their feet while protecting the employer from most related lawsuits. In most places, it’s required by law and is funded through premiums to a state or private insurer, making it the standard risk-management tool for workplace injuries.

Casualty insurance covers liability for injuries or damages to others caused by the business, not injuries to employees themselves. Property insurance protects physical business assets like buildings and equipment. Life insurance pays a benefit to beneficiaries upon an insured person’s death and doesn’t cover on-the-job injuries. For example, a worker who sprains a knee while working would typically be handled by workers’ compensation for medical costs and wage support, rather than by casualty, property, or life insurance.