Which statement about Workers Compensation is true?

Workers' compensation is indeed a state-required insurance plan. Each state in the U.S. has its own specific laws and regulations governing workers' compensation, which is designed to provide benefits to employees who suffer work-related injuries or illnesses. This requirement is put in place to ensure that workers are protected financially in the event of an incident related to their job, encouraging a safer working environment and providing necessary medical care and wage replacement during recovery.

The distinction between each state's plan is crucial; while they all aim to assist workers, the coverage details, benefits, and eligibility criteria can vary significantly from one state to another. This state-level administration underlines the necessity of understanding local laws regarding workers' compensation in any workplace setting.

In contrast, workers' compensation does not cover non-work-related illnesses or injuries that occur outside the workplace. Additionally, while coverage is focused on occupational injuries, it also includes certain illnesses that arise from job duties, signaling that it is not limited solely to incidents happening on the job site. Thus, the emphasis on state requirement in the correct answer accurately highlights a defining feature of workers' compensation systems in the United States.