Which of the following insurance policies is essential for contractors to deal with potential work-related injuries?

Workers' compensation insurance is essential for contractors because it specifically covers medical expenses and a portion of lost wages for employees who suffer work-related injuries or illnesses. This type of insurance is designed to protect both the contractor and the employees, ensuring that workers receive the necessary care and financial support after an injury. In many jurisdictions, it is also a legal requirement for businesses that employ workers, highlighting its importance in occupational safety and compliance.

In contrast, liability insurance protects against claims of negligence or harm to third parties but does not cover employee injuries. Health insurance, while beneficial for general medical coverage, does not directly address workplace injuries or associated costs. Property insurance protects against damage to physical assets, but it does not extend to injuries sustained by employees while performing work-related activities. Therefore, workers' compensation insurance is critical in this context, ensuring that contractors can appropriately handle potential work-related injuries.