Arizona Contractors License Practice Exam

What does workers' compensation insurance protect against?

1. Injuries caused by employee negligence

2. Injuries that occur outside of work hours

3. Injuries sustained by employees while performing their job

4. Injuries that do not require any medical care

The correct answer is: Injuries sustained by employees while performing their job

Workers' compensation insurance is specifically designed to cover injuries sustained by employees while they are performing their job duties. This type of insurance provides benefits such as medical expenses, rehabilitation costs, and wage replacement for employees who are injured on the job, regardless of who was at fault for the injury. It is a crucial component of employer responsibility, ensuring that workers receive the support and care needed without them having to prove negligence on the part of their employer. In contrast, injuries caused by employee negligence or those that occur outside of work hours are typically not covered by workers' compensation insurance. Additionally, while some injuries may not require medical care, this does not mean they fall under the protection of workers' compensation since the insurance primarily focuses on injuries that necessitate such care. Thus, option C accurately reflects the primary purpose of workers' compensation insurance in protecting employees during the course of their employment.