What does workers' compensation aim to prevent for employers?

Workers' compensation is designed to provide a system of insurance that offers financial support and medical benefits to employees who suffer job-related injuries or illnesses, while also protecting employers from lawsuits arising from these workplace incidents.

By providing a no-fault system where employees can receive benefits regardless of negligence, workers' compensation aims to minimize the legal exposure of employers. This system reduces the likelihood of employees pursuing litigation over workplace injuries, which can be costly and time-consuming for businesses. Consequently, by effectively limiting the potential for lawsuits, workers' compensation serves as a form of protection for employers, helping to maintain a safer work environment and reducing legal risks related to workplace accidents.

The other options focus on different aspects of employment and labor relations. Increased insurance premiums can be a consequence of claims but is not the primary aim of workers' compensation. Unfair labor practices pertain to violations of labor laws rather than injury-related issues. Unemployment claims relate to workers who lose their jobs for various reasons, not injuries sustained on the job. Thus, the primary focus of workers' compensation remains on preventing lawsuits from workplace injuries, aligning closely with what the system intends to address.