Washington State Insurance Practice Exam

Disable ads (and more) with a membership for a one time $4.99 payment

Prepare for the Washington State Insurance Exam. Study with interactive flashcards and multiple-choice questions. Each question offers hints and explanations to help you succeed.

Practice this question and more.

What is "workers' compensation insurance"?

Insurance that covers home repairs
Insurance providing benefits for work-related injuries
Insurance for business liability
Insurance for vehicle accidents

The correct answer is: Insurance providing benefits for work-related injuries

Workers' compensation insurance is specifically designed to provide benefits to employees who suffer injuries or illnesses as a result of their job. This type of insurance covers medical expenses, rehabilitation costs, and lost wages due to the inability to work following a work-related incident. By providing these benefits, workers' compensation serves as a safety net for employees and a form of protection for employers against lawsuits resulting from workplace injuries. The focus of this insurance is solely on work-related incidents, distinguishing it from other types of insurance that cover different risks, such as home repairs, business liability, or vehicle accidents. Understanding the specific functions and coverage areas of workers' compensation is essential for both employees and employers in managing workplace safety and legal responsibilities.