Final answer:
Workers' compensation insures employees against income loss due to work-related injuries, disabilities, or diseases, with employers contributing to state-run funds for this purpose.
Step-by-step explanation:
The insurance that insures employees against possible loss of income resulting from a work-related injury, disability, or disease is C. Workers' compensation. This is a system where employers are legally required to contribute a certain percentage of employee salaries into state-level funds. These funds are designed to provide benefits to employees who suffer from an injury, disability, or disease due to their job. Workers' compensation is distinct from other types of insurance such as health insurance, life insurance, and retirement benefits, as it is specifically geared towards work-related incidents.