What type of coverage protects businesses from losses due to employment-related injuries?

Workers' compensation insurance is specifically designed to protect businesses from losses arising from employment-related injuries and illnesses. This type of coverage provides financial benefits to employees who are injured on the job, covering medical expenses and providing income replacement during their recovery. It also protects the employer by limiting liability for workplace injuries, as employees typically relinquish their right to sue the employer in exchange for this coverage.

In contrast, general liability insurance primarily covers claims related to bodily injury or property damage to third parties, which is not focused on employment scenarios. Disability insurance is intended to provide income support to individuals who cannot work due to non-work-related injuries or illnesses. Professional liability insurance, on the other hand, covers negligence or malpractice claims related to professional services, which does not apply to workplace injuries either. Therefore, workers' compensation insurance is the only choice that directly addresses the coverage needs for employment-related injuries.