Workers’ Compensation Coverage B Definition
Workers’ compensation coverage B refers to an insurance policy that compensates employees for expenses related to medical treatment, lost income ,and rehab. The coverage relates to the liability of the employer.
A Little More on What is Workers’ Compensation Coverage B
Workers’ compensation coverage B, also known as employers’ liability coverage, asks employers to offer coverage to their workers. Corporate buyers of this insurance policy aim to safeguard their workers and comply with state insurance laws. Part B involves the two different elements of the Workers’ Compensation agreements: Part A and Part B.
Part A complies with insurance requirements, and Part B involves the payment of any excessive damages caused. The insurance policy covers medical expenses and other costs as well as lost wages for employees. Employees receive payments on the basis of preplanned schedules in case of injuries. The adjuster ascertains the expenses that need to be paid. It includes:
- Bodily injury caused by accident: An amount of $1,00,000 for every accident
- Bodily injury caused by disease: Policy limit of $5,00,000
- Bodily injury caused by disease: A compensation of $1,00,000 per employee
Workers’ compensation coverage B offers 100% compensation for medical expenses, two-third of lost wages, and a lump sum amount for a death benefit, a disability and disfigurement related cases to the workers who get injured or die during the job activities. This coverage is applicable for firms that employ at least 3 employees or workers (that includes owners or uninsured subcontractors) in a year.
How Workers’ Compensation Coverage B functions
The workers’ compensation coverage B covers excessive damages caused and takes place when an employee gets injured or the employer becomes negligent. When an employee becomes a victim of a major injury as a result of employer’s negligence, these additional payments need to be made. For example, an employee reports his employer about a damaged wire on an equipment, but the employer doesn’t take any action to fix it, and ultimately, the employee gets an electric shock. In this case, the employer will be responsible for paying the employee or his family a certain amount of claim that is more than the amount mentioned in Part A.
A lot of things need to be considered when analyzing workers’ compensation coverage. One should ensure that the liability of employers under Part B is correctly timed on the corporate umbrella. The negligence compensation by employees can be quite huge, and therefore, the umbrella policy can go beyond the standard limit of $1,000,000. Also, if a firm is based in a monopolistic location, one can purchase the employers’ liability in the form of an endorsement from the basic liability provider.