Which statement correctly describes worker's compensation?

Worker's compensation is designed to protect employees who are injured or become ill as a result of their job. The system is primarily funded by employers, requiring them to pay premiums to a workers' compensation insurance program. This insurance ensures that employees receive benefits regardless of fault, meaning they do not lose out on financial support due to workplace injuries.

The funding mechanism highlights the purpose of worker's compensation: to ensure continuous support for employees. When an employee gets injured at work, they are entitled to benefits that cover not only their medical expenses but also lost wages and rehabilitation efforts, thus safeguarding their financial stability during recovery.

In contrast, the other statements do not accurately reflect the nature of worker's compensation. It is not optional; most jurisdictions mandate that employers provide this coverage to protect their workers. If an employee is injured, they do not lose benefits; instead, they receive compensation for their injuries. Lastly, while the program does cover medical expenses, its scope is much broader, including wage replacement and other benefits to support recovery and return to work.