Which statement about state workers' compensation is correct?

Workers' compensation is indeed treated as a general business expense. This is because employers are generally mandated to provide this insurance to cover the costs associated with work-related injuries or illnesses that their employees may experience. The premiums paid for workers' compensation coverage reflect a cost of doing business, much like other expenses related to payroll, utilities, and materials.

In the context of workers' compensation, these costs can vary based on the industry, the number of employees, and the company’s claims history. Employers budget for these expenses and factor them into their financial planning, making it a standard business operating cost. Additionally, because it is essential for protecting employees and ensuring compliance with state regulations, it is not a negotiable expense but rather a critical aspect of an employer’s financial obligations towards its workforce.

In terms of other options, while some workers' compensation programs may be self-funded (a model chosen by certain organizations), this does not apply universally. The option mentioning reliance on employer premiums only does not account for the fact that some programs may involve varying funding mechanisms, including state funds or private insurance. The statement about states insuring their compensation programs privately is also not entirely accurate, as many states have public state-run systems alongside private options.