Workers’ Compensation, Coverage A
What Does Workers’ Compensation, Coverage A Mean?
Workers’ compensation Coverage A, part one of workers’ compensation insurance, provides disability benefits, vocational rehabilitation, medical care, and death benefits to employees who are injured or killed while on the job. The insurance company is responsible for paying all benefits and compensation in accordance with the workers’ compensation laws of the insured employer’s state. The premium for this coverage is calculated based on the company’s payroll and the nature of the employees’ work.
Insuranceopedia Explains Workers’ Compensation, Coverage A
In nearly all U.S. states, state law mandates the benefits provided under workers’ compensation insurance. As long as the employee is not under the influence of drugs, benefits are typically payable without question, which is why many employers require routine drug testing, in addition to influence. To fund this coverage, employers allocate a significant amount for premiums. Employers who fail to provide workers’ compensation coverage risk having to pay all benefits out-of-pocket, as well as facing additional penalties for violating state laws.
