What term describes the qualification of a benefit for payment under workers compensation statutes?

• A. Compensability
• B. Coverage
• C. Liability
• D. Exposure

Answer: (A)

Compensability is the idea that a claim qualifies for workers’ compensation benefits. It means the injury or illness meets the rules of the system—typically that it arises out of and in the course of employment and is within the statute’s scope for coverage. When a claim is compensable, benefits can be paid (subject to medical evidence and benefit limits). If these conditions aren’t met, the claim isn’t compensable.

Coverage refers to whether an employer has a policy that protects against those risks, not whether a particular claim qualifies for benefits. Liability is about who is legally responsible for damages under other legal theories, not the eligibility for workers’ compensation payments. Exposure means the level of risk or potential loss, not the eligibility of a specific claim for benefits.