Final answer:
Workers' Compensation insurance covers employee rehabilitation benefits, employer liability, and investigation and defense costs. It does not cover contractual liability, as this pertains to contractual obligations not related to on-the-job injuries.
Step-by-step explanation:
The question is asking about what is covered by Workers' Compensation insurance. Workers' Compensation typically covers employee rehabilitation benefits, employer liability, and investigation and defense costs. However, it does not cover contractual liability, because this relates to the obligations that an entity is bound to by contract, which is outside the scope of Workers' Compensation insurance.
Workman's compensation insurance requires employers to pay into state-level funds, which in turn provide benefits to employees who are injured on the job. These benefits can include compensation for medical expenses, income benefits, and rehabilitation support, to help an injured worker recover and, if possible, return to work.