Employers have a legal responsibility to their employees to make the workplace safe. However, accidents happen even when every reasonable safety measure has been taken. To protect employers from lawsuits resulting from workplace accidents and to provide medical care and compensation for lost income to employees hurt in workplace accidents, in almost every state, businesses are required to buy workers compensation insurance. Workers compensation insurance covers workers injured on the job, whether they’re hurt on the workplace premises or elsewhere, or in auto accidents while on business. It also covers work-related illnesses.
Workers compensation provides payments to injured workers, without regard to who was at fault in the accident, for time lost from work and for medical and rehabilitiation services. Workers compensation also provides death benefits to surviving spouses and dependents. Workers compensation insurance coverage can generally be broken down into two parts:
- Part A – covers all injuries and diseases that must be covered according to the individual state workers compensation statutes. All benefits are paid in accordance with the schedule provided by the states.
- Part B – covers the liability that may be imposed beyond the state statutes subject to the exclusions and conditions of the policy.
Other Types of Workers Compensation Coverages to Consider
- Federal Employers’ Liability Act (FELA)
- Longshore And Harbor Workers Coverage
- Stop-Gap Or Employers Liability Coverage
- Voluntary Compensation