What is a true statement regarding workers' compensation insurance?

Workers' compensation insurance is designed to provide a safety net for both employees and employers in the event of a work-related injury or illness. For employees, it offers financial compensation for medical expenses and lost wages due to workplace injuries, effectively supporting them during recovery without the burden of direct financial loss. For employers, maintaining workers' compensation insurance helps in protecting against lawsuits that could arise from workplace injuries, as employees typically waive their right to sue the employer in exchange for guaranteed benefits. This mutual benefit underscores the collaborative nature of workers' compensation, as it aims to create a safer work environment while offering assurance to both parties involved.

The other options do not fully encapsulate the nature of workers' compensation. While it may seem that it only benefits employees, it is essential to recognize the protections it extends to employers as well. The assertion that it is optional for most employers is misleading, as many states, including Mississippi, require certain employers to carry workers' compensation coverage. Lastly, the idea that it only covers injuries occurring on the job ignores other circumstances that may also be covered, such as occupational diseases or incidents occurring during business-related travel. Hence, option B accurately reflects the comprehensive intent and function of workers' compensation insurance.