In the context of workers' compensation, what does "indemnity" refer to?

Indemnity in the context of workers' compensation specifically refers to compensation for lost wages. When an employee is injured on the job and is unable to work, workers' compensation provides financial support to replace a portion of their lost income during the recovery period. This payment is designed to ensure that workers do not suffer significant financial hardship as a result of their inability to earn wages due to work-related injuries.

The other options focus on different aspects of workers' compensation. Medical payments for injuries, rehabilitation benefits, and coverage of ongoing medical expenses are all important components of the overall workers' compensation system, but they do not pertain to the compensation for lost wages, which is the essence of indemnity. Indemnity is crucial as it directly addresses the financial impact of an injury on a worker's life by providing income during periods of recovery and unwaged time off.