Final answer:
The insurance that compensates staff for medical costs and lost wages due to work-related injuries is Workers' compensation insurance, a state-managed fund into which employers are legally required to pay a percentage of employee salaries.
Step-by-step explanation:
The insurance that compensates staff for medical costs and wages for work-related injuries is known as Workers' compensation insurance. Employers contribute to this fund as a legal requirement, where a small percentage of the salaries paid to employees is allocated. These funds are often managed at the state level and designed to provide benefits to employees who sustain injuries while on the job. Workers' compensation insurance is distinct from other types of insurance such as life insurance, disability insurance, and health savings accounts, which serve different functions.