State law requires that employers provide Workers Compensation insurance for their employees. Worker’s Compensation insurance provides coverage for accidents or disease arising from employment as prescribed by the state laws. Benefits include lost wages, medical expenses, permanent disfigurement and permanent disability payments.

Each state defines what benefits will be provided, and the policies are written to reflect what is required by the law. An employee can be compensated if injured while working for you, regardless of your negligence as an employer.

The definition of “employee” is broader for Worker’s Compensation coverage than it is for the IRS. Sub-contractors are considered employees even if not subject to withholding (FICA, state or federal), and as such would be covered under this policy as long as they are working for you.

In addition to the statutory benefits for medical expenses and lost wages, this policy provides Employer’s Liability coverage. This coverage protects employers for their legal liability for bodily injury by accident or disease to an employee arising out of and in the course of the employee’s employment when not covered under the worker’s compensation law. Before the benefits can be paid under this coverage, the employee must prove the employer is liable for the injury.

The limits provided on the Worker’s Compensation policy are for:

• Bodily Injury by Accident. This amount is the most an insurer will pay under this coverage for all claims arising from one accident, regardless of how many employees are involved in the accident.
• Bodily Injury by Disease (Policy Limit). This is the aggregate limit the insurer will pay under this coverage for all claims sustaining bodily injury by disease during the policy period.
• Bodily Injury by Disease (Each Employee). This amount is the most an insurer will pay under this coverage for damages due to bodily injury by disease to any one employee.