This coverage agreement obligates the insurer to pay all compensation and other
benefits required of the insured by the workers compensation law or occupational
disease law of any state listed in the policy. The coverage applies to bodily
injury by accident and by disease.
Coverage A shows no dollar limit for the benefits provided since any applicable
limits would be those established within the law of the state. Benefits under
Coverage A are paid to the employee without regard to fault.
|
Employers Liability |
|
- |
|
Bodily Injury by Accident |
|
$100,000
Each Accident |
|
Bodily Injury by Disease |
|
$500,000
Policy Limit |
|
Bodily Injury by Disease |
|
$100,000
Each Employee |
Experience Modification factor used for premium calculations. Higher limits
are available.
Employer Liability
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 workers compensation law.
Before benefits are paid under this coverage, the employee must prove the employer
is liable for the injury.
Bodily Injury by Accident
This amount is the most an insurer will pay under Coverage B for all claims arising
from any one accident, regardless of how many employees are involved in the accident.
The standard limit is $100,000. for any one accident. Higher limits
are available.
Bodily Injury by Disease - Policy Limit
This is the aggregate limit the insurer will pay under Coverage B for all claims
sustaining bodily injury by disease during the policy period. The standard
policy limit is $500,000. Higher limits are available.
Bodily Injury by Disease - Each Employee
This amount is the most an insurer will pay under Coverage B for damages due to
bodily injury by disease to any one employee. The standard limit of liability
for each employee is $100,000. Higher limits are available.
Other State Insurance
This provides workers compensation coverage if the insured expands operations into
other states not declared at the time the policy is issued or renewed. If
the insured elects this coverage and operations begin in a state listed under Other
States, the insurer provides the same coverage as if the state was declared in the
policy at the time of issuance.
Voluntary Compensation Endorsement
Workers compensation laws of most states exempt some types of employment from workers
compensation benefits. This endorsement amends the standard policy to provide
coverage for employees with exempted occupations from the workers compensation act.
When the endorsement is added it does not make employees subject to the workers
compensation law, but it obligates the insurance company to pay on behalf of the
insured, an amount equal to the compensation benefits that would be payable to those
employees if they were subject to the workers compensation law of that state.
United States Long Shore and Harbor
This is a federal act, similar to the state workers compensation act. The
federal act was designed to provide workers compensation benefits to employees who
work in maritime employment, or environments, upon the navigable waters of the United
States and who are usually considered outside the scope of state workers compensation
laws.
When the USL&HW endorsement is added to the standard policy, it applies to work
done in the states scheduled on the policy and extends the definition of the workers
compensation law to include the USL&HW. Coverage may also apply for those
not in the maritime business, but are exposed to navigable waters in the performance
of their jobs.
Executive Officers and Partners Endorsement
In some states, workers compensation law allows an insured to include or exclude
Executive Officers and Partners, or both, from coverage. Adding this endorsement
can designate the individuals not covered under the policy.
Experience Modification
This is a factor that deals with the rating of the policy. The Experience
Modification figure is based on the insured's loss experience. The factor is used
to increase or decrease the manual rates of insurance.
Monopolistic States
There are five states that require all workers compensation insurance to be placed
with their state fund. No private insurer is allowed to write workers compensation
coverage in those states. The states are North Dakota, Ohio, Washington, Wyoming,
and West Virgina.