Certified Professional in Health Care Risk Management (CPHRM) Practice Exam 2025 - Free CPHRM Practice Questions and Study Guide

Workers' compensation is a vital insurance program designed to provide financial and medical benefits to employees who suffer from work-related injuries or illnesses. It serves as a critical safety net, ensuring that employees can receive necessary medical care without incurring personal expenses related to their injury. This program also offers wage replacement during the time they are unable to work due to their condition, thus helping them maintain financial stability while they recover.

By addressing the specific need for protection against work-related incidents, workers' compensation plays an essential role in the overall healthcare risk management landscape, reducing the financial burden on both employees and employers when accidents occur on the job. Other options, such as job placement services or pension benefits, do not directly relate to the primary objectives of workers' compensation, which focuses explicitly on addressing the consequences of work-related injuries and illnesses.