YOU ASK:

Why do I need a workers’ compensation and employer’s liability insurance policy?

WE ANSWER:

Every employer should be able to provide worker's compensation benefits to their employees when they sustain any occupational injury, or to their employees' dependants in the event of a work-related fatality. In addition, an employer should purchase employer's liability insurance coverage to protect themselves against catastrophic work-related liability lawsuits.

Most states require employers to carry worker's compensation insurance by law. An estimated 97 percent of all US employees are covered under worker's compensation insurance and eligible to receive the necessary medical treatment and benefits for lost wages for the period of time during which they are disabled.

Employees do not have to pay any deductibles or premiums to be covered under their employer's workers compensation and employer's liability insurance policy. Benefits are payable for as long as the employee's occupational disability endures. If a worker dies as a result of a work-related incident, their survivors and dependents are eligible to receive workers compensation benefits for as long as they remain legally the deceased employee's survivors.

Characteristics of the Worker's Compensation and Employer's Liability Insurance Policy

The policy is a much-needed protection offering great financial security for every employer. It provides comprehensive coverage for just about any situation in which an employee sustains a work-related loss or en employer can be held liable for occupational injury.

The worker's compensation and employer's liability insurance policy pays injured workers benefits regardless of fault. The employer is assumed to have absolute liability for any injuries arising out of their business operations. This means that no liability lawsuit is needed in order for an employee to receive worker's compensation as long as the employer's actions have not been deliberately harmful.

  • Part One of the policy deals specifically with worker's compensation insurance coverage. Under this coverage, the insurance provider takes the responsibility of paying any reasonable and necessary medical expenses and benefits for lost wages to the injured employees of the insured. The benefits are unlimited and are payable for the whole period of the worker's disability.
  • Part Two of the policy - employers' liability insurance - covers the insured employers against any liability lawsuits that worker's compensation might not cover.
  • Part Three provides liability coverage in the event of a worker's compensation claim in another state.
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