Texas All Lines Adjuster Practice Test

In Workers Compensation insurance, what is primarily compensated?

1. Business losses

2. Employee injuries

3. Product liability claims

4. Environmental damages

The correct answer is: Employee injuries

Workers' Compensation insurance is specifically designed to provide financial support to employees who suffer injuries or illnesses as a result of their job. This system is in place to ensure that affected workers receive medical care and compensation for lost wages without having to pursue a lawsuit against their employer. The primary purpose of this insurance is to cover the costs associated with workplace injuries, including medical expenses, rehabilitation costs, and a portion of lost income if the employee is unable to work due to their injury. Other options involve different types of insurance or compensation. Business losses are typically covered under commercial property or business interruption insurance, product liability claims are addressed through general liability insurance, and environmental damages are often covered by specialized environmental insurance policies. Therefore, the focus of Workers' Compensation is exclusively on compensating employee injuries, making this the correct choice.