What does Workers' Compensation cover?

Workers' Compensation primarily covers medical care for injuries that occur as a result of job-related incidents and provides benefits for the families of workers who are killed while performing their work duties. This insurance is designed to protect employees from financial hardships associated with workplace injuries and fatalities by covering medical expenses, rehabilitation costs, and a portion of lost wages during the recovery period. Additionally, if a worker dies due to a work-related incident, Workers' Compensation offers death benefits to help support their dependents.

The other options do not accurately reflect the primary purpose of Workers' Compensation. For instance, loss of income due to retirement does not fall under the scope of Workers' Compensation, which focuses exclusively on work-related injuries and fatalities. Liability coverage during work-related accidents typically falls under different types of insurance, such as general liability or employer’s liability insurance, rather than Workers' Compensation itself. Lastly, insurance premiums for employees is not a coverage aspect but a cost associated with offering the Workers' Compensation insurance. Thus, the correct answer identifies the core benefits provided by Workers' Compensation for both medical care and family support in case of workplace fatalities.