Workers Compensation Insurance Policy: Coverage and Limitations

Regulators often require employers in physically demanding or hazardous sectors to signup for a workers compensation insurance policy. Also, it is the insurance product of choice for most employers that is endorsed by regulators.  It is used to compensate employees for loss of income due to disease, injury, or permanent disability during or as a result of their employment. Most of laws used for workers compensation typically cover accidental work related injuries that are separate from the tort liability or common law that applies to employer liability insurance.

The general information in the insurance policy contract between the insurance provider and the employer include; contract inception and expiry dates, insurance company and employer’s name plus contact, local laws that permit the contract and specification of covered work locations.

Other sections of the workers compensation insurance policy provide an outline the coverage premium costs, maximum value of the policy, procedures to be followed incase of injury and benefits payable to employees by the insurance company. But, the catch here is work rated injury should be as stated in the insurance policy’s terms and conditions to qualify for benefits.


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