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

Workers compensation insurance is essential for contractors to address potential work-related injuries because it provides coverage for medical expenses and wages for workers who are injured on the job. This type of insurance is designed specifically to protect both employees and employers by ensuring that injured workers receive necessary care and financial support, while also limiting the employer's liability in the event of a workplace accident.

In many jurisdictions, including South Carolina, workers compensation insurance is a legal requirement for contractors with employees, emphasizing its importance in managing the risks associated with construction and labor-intensive projects. The coverage typically includes rehabilitation services, which can be crucial for an injured worker’s recovery and return to the workforce.

While liability insurance is important for protecting against third-party claims, health insurance is focused on individual medical coverage rather than workplace injuries. Property insurance addresses damage to physical assets rather than injuries sustained by workers. Therefore, among these options, workers compensation insurance specifically fulfills the critical need for addressing work-related injuries in contracting environments.