Workers Comp Explained

Understanding Your Workers Compensation And Employers Liability Insurance Policy

Workers compensation and employers liability insurance policies consist of two distinct coverages designed to help employers meet their employee obligations in the event of an occupational injury.
Workers Compensation The workers compensation section of a workers compensations and employers liability insurance policy provides an employer coverage for the compensation and other benefits required by the workers compensation and occupational disease laws of the state or states listed on their policy. Coverage applies in the event of bodily injury by accident and disease. Coverage is limited to accidents which occur while the policy is in force, and where an employees last exposure to conditions which cause or aggravate the disease occur during the policy period. Benefit amounts are not included in the policy and are based on those limits determined by the workers compensation laws. The workers compensation laws which are covered by the policy are automatically included as part of the policy. If a conflict occurs between the language of the policy and the applicable workers compensation laws the laws will override the policy.
Employers Liability Insurance Employers can be held liable, apart from workers compensation, for damages resulting from occupational injuries. These types of claims do not fall into the category of workers compensation benefits and therefore are not covered by workers compensation insurance. Employers liability insurance is designed to protect an employer with some types of claims where workers compensation insurance does not. Common examples… Third-Party – If an employee sues a third-party, such as an equipment manufacture, for injuries sustained from a piece of equipment which wasn’t properly maintained by an employer, the equipment manufacture may then sue the employer. Care And Loss Of Services – This refers to a situation where an employee’s spouse may collect damages for care and loss of services such as affection and companionship from an employer who is held liable. Consequential Bodily Injury – In the event a family member of an injured employee suffers an injury, such as a heart problem, upon hearing the news of the employees injury, this coverage offers protection the employer. Dual Capacity – This type of claim occurs when an employer is sued for injuries to an employee for which the employer was acting in a capacity other than an employer. This could apply in a case where an employee is injured on the job by a product manufactured by his or her employer. Other Types Of Suits Or Claims Covered – Workers compensation does not apply to some employers in some circumstances. In a case where an employer subject to workers compensation, therefore does not carry workers compensation insurance, employers liability insurance, subject to exclusions and provisions, offers coverage. Workers compensations and employers liability insurance is an important coverage that helps protect an employer in many situations where her or she be held liable for injuries sustained by an employee. For specific questions about workers compensation and employers liability coverage please ask you agent for advise. Request a free quote