Sections of a Worker’s Compensation Policy

Injured employee visiting a lawyer

Every state has legislation which requires employers to compensate employees who suffer a job-related disease or injury. To meet this obligation, employers might opt to self-insure or buy worker’s compensation insurance. Most opt for worker’s compensation insurance.

Though most of the insured know of the existence and intended use of a workers’ compensation, few understand that the policy has three parts. This misinformation at times brings a challenge in interpreting the policy when procuring the services ofan injury at work lawyer in Murray after a work-related injury.

Here are the main sections of a worker’s compensation policy.

Employees’ Compensation Insurance

This section deals with a worker’s coverage for work-related injury. There are no limits in part one of a workers’ compensation policy, and the insurer is fully responsible for payment of all benefits listed in the policy. In some instances, however, an employer might be required to pay for excess compensation benefits for a worker.

Employers’ Liability Insurance

This coverage is designed for employers against lawsuits which might be filed by their employees for work-related injuries. These are the injuries which are not covered by the workers’ compensation policy they have taken. It also protects an employer in case he/she gets sued by a worker’s dependents or spouse for loss of consortium.

Other States Insurance

Section three of a workers’ compensation policy identifies which state{s} the benefits cover. This section has subsections A and B. Subsection ‘A’ lists the states in which the coverage will require specific eligibility tests before payout. Subsection ‘B’ defines all the states in which the policy benefits can be paid to the claimant.

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In the past years, little has changed on the above subsections. What usually changes is the court’s interpretation of the states covered in section three of the compensation policy. Your attorney is hence vital when signing an insurance policy to help you interpret this section and ensure you and your workers are adequately covered.