Worker's Compensation Insurance

Worker's compensation provides medical and disability coverage for on-the-job injuries or work related injuries. This coverage also provides Employer's Liability coverage, a coverage that protects the company from an injured employee's claim that the employer was negligent.

When?

This coverage should always be included in your small business insurance program.

Why?

It's the law! The various states require employers demonstrate they have the financial ability to pay a claim regarding employment-related injuries or illnesses, and typically, this financial ability is demonstrated through worker's compensation coverage. Two types of coverage are usually included in worker's compensation policies:

• First, worker's compensation coverage provides benefits for injured workers as required by state law -- regardless of who is at fault.
• Second, employers liability coverage provides additional coverage in case the employer is ever sued for damages arising from employment-related accidents or diseases.

Covered Benefits

• Medical benefits
• Disability income benefits
• Rehabilitation benefits
• Death benefits
• Workers weekly wage

Major Endorsements:

Endorsements can limit or expand the scope, cause, and condition of the coverage.

The following are some of the major endorsements:

• All-States Endorsement: Employees and employers are covered when working outside of the state in which the company is based.
• World-Wide Endorsement: Employees and employers are covered when working outside of the country in which the company is based.

Examples:

• An employee who spends 8 hours a day writing code is diagnosed with a repetitive stress injury such as carpal tunnel syndrome. Worker's compensation covers the costs for medical attention and time off work.
• A top member of your traveling sales staff falls off a podium at an awards banquet. She finds her ACL is torn and must have reconstructive surgery. Worker's compensation covers the costs of her medical attention and time off work.

This section is designed for general informational and descriptive purposes only. The precise wording of each coverage is subject to specific conditions and endorsements of the actual policy issued. Always read your policy very carefully!