Wisconsin Esthetics State Board Practice Test

What is a key characteristic of worker's compensation?

1. It covers voluntary employee benefits

2. It is optional insurance for small businesses

3. It is legally required to cover employee injuries

4. It is only applicable to businesses with five or more employees

The correct answer is: It is legally required to cover employee injuries

A key characteristic of worker's compensation is that it is legally required to cover employee injuries. This system is designed to provide financial support and medical care to employees who sustain injuries or illnesses that arise out of and in the course of their employment. The requirement for coverage ensures that workers receive necessary compensation regardless of fault, which promotes workplace safety and provides a safety net for employees injured while performing their job duties. The nature of worker's compensation as a legal requirement helps ensure that both employees and employers comply with safety regulations and reduces the potential for lawsuits related to workplace injuries. This system functions as a no-fault mechanism—the injured worker receives benefits without needing to prove negligence on the part of the employer. Comprehensive coverage under workers' compensation is critical, as it helps protect the worker’s livelihood and supports their recovery, thus maximizing their chances of returning to work. Moreover, it helps employers by limiting their liability, as the system is designed to prevent lawsuits stemming from workplace injuries.