Which entity is responsible for paying indemnity benefits for a work-related injury?

Which entity is responsible for paying indemnity benefits for a work-related injury?

• A. Employer
• B. Employee
• C. Insurer
• D. State

Answer: (A)

Indemnity benefits are wage-replacement payments made under workers’ compensation for a work-related injury. The employer is the party responsible for providing this coverage and ensuring those benefits are paid. In practice, the employer purchases a workers’ compensation policy and the insurer administers and issues the actual payments, but the obligation and funding come from the employer. The state doesn’t pay these benefits, and the employee receives them through the system. So, the employer is the entity ultimately responsible for paying indemnity benefits.

Indemnity benefits are wage-replacement payments made under workers’ compensation for a work-related injury. The employer is the party responsible for providing this coverage and ensuring those benefits are paid. In practice, the employer purchases a workers’ compensation policy and the insurer administers and issues the actual payments, but the obligation and funding come from the employer. The state doesn’t pay these benefits, and the employee receives them through the system. So, the employer is the entity ultimately responsible for paying indemnity benefits.