Archive for Workers Compensation
Employers Liability Coverage or Stop Gap Liability
The standard workers compensation policy consists of two coverages. Coverage A provides the state-mandated Workers Compensation coverage. Coverage B is Employers Liability which provides coverage for worker injury liability situations not covered by Coverage A. The four states where workers compensation must be purchased through a state fund do not provide Coverage B so it must be purchased from another market. The coverage is provided by adding an endorsement to a Commercial General Liability coverage form or policy. If the business operates in multiple states, coverage can be provided by endorsement to the non-monopolistic state workers compensation coverage. Some carriers offer this coverage on a stand-alone basis.
Workers compensation insurance is based on a system of state laws that require employers to provide medical care, disability benefits, and lost wages to employees injured or disabled in the course of their employment. Most markets provide workers compensation coverage on a monoline basis to both standard and difficult-to-place risks:
Workers Compensation Excess Insurance
This coverage is an important part of any self-insured workers compensation program. The insured first must qualify as a self-insurer and then post the required bond with the state industrial commission. Because loss experience can be unpredictable, the insured purchases excess insurance that triggers above a specified retention level. The excess insurance carrier pays losses above the insured’s retention up to an agreed amount. The excess carrier may also offer additional services to the insured, such as claims handling, loss control, and various record keeping services.
Workers Compensation Self-Insurers Bonds
Special bonds are required of organizations that choose to self-insure their workers compensation exposures. They must apply to the state’s Workers Compensation Board, register to be a self-insurer, and post a bond that guarantees that claims will be paid.