What is the primary purpose of Workers' Compensation insurance?

The primary purpose of Workers' Compensation insurance is to provide employees with compensation for work-related injuries. This insurance is designed to support workers who sustain injuries or illnesses as a direct result of their job. It aims to ensure that injured employees receive medical care and financial support for lost wages during their recovery. This system plays a crucial role in protecting workers' rights and ensuring they receive necessary assistance without needing to prove fault or negligence on the part of the employer.

While some of the other options may seem related, they do not capture the core function of Workers' Compensation. For instance, protecting companies from litigation is an aspect of the insurance's broader implications but not its primary purpose. The coverage focus is specifically on compensating employees for their work-related issues, rather than all types of employment-related losses or funding employee benefits. Thus, the essence of Workers' Compensation lies in providing essential support to those injured in the course of their employment.