Final answer:
A form of insurance providing benefits for work-related injuries or disabilities is known as workers' compensation, which is funded by employer contributions into state-level funds.
Step-by-step explanation:
The form of insurance paid by the employer that provides cash benefits to workers injured or disabled in the course of employment is called workers' compensation. Employers are legally mandated to contribute a small percentage of the wages they pay into state-run funds designed specifically for this purpose. These funds are utilized to provide financial assistance to employees who have suffered injuries while on the job, ensuring that they are supported during their recovery period.