Workers Compensation
Insurance
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. Benefits under coverage (A) are paid to the employee
without regard to fault.
Employers 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, which can be increased.
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,
which can be increased.
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, which can be increased.
Other States Insurance
This provides workers compensation coverages 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 policy 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 Longshore & Harbor Workers Endorsement (USL&HW)
This is a federal act which is similar to the state workers
compensation act. The federal act was designed to provide
workers compensation benefits to employees who work in maritime
employment upon the navigable waters of the United States and
who are usually considered outside the scope of state workers
compensation laws. When the USL&HWA 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&HWCA.
Executive Officers, Partners Exclusion 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.
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