Worker's Compensation (WC) Flashcards
WC Laws
Employers have absolute liability for accidental bodily injury or disease arising out of an employee’s employment. Employer must provide compensation regardless of who is at fault for the accident
Compulsory Law
States require employers to provide worker’s comp benefits for employees and to have workers comp insurance in order to cover their liability for employee injury or illness.
Elective Law
Allow the employers or employees to elect to remain outside the provisions of the law, so the employee could sue for greater compensation than provided by law. Employer could choose to defend against WC claims.
Monopolisitc
Requires WC insurance to be obtained from a state fund.
Competitive
Allows WC insurance to be obtained from private insurers or from a competitive state fund if one is available.
Worker’s Compensation Insurance
Cover’s employer’s liability to an employee for accidental injury or disease caused or aggravated by employment conditions during the policy period. Covers all benefits including medical, disability income, death, and rehab
Employer’s liability Insurance
Covers employer’s liability for accidents in situations not covered by WC laws. Covers care and loss of services and consequential bodily injury to family member
Dual Capacity
When an employer may have liability as both an employer and as a product manufacturer.
Other States Insurance
Automatic coverage in states not specified in the dec page until permanent operations begin.
Premium
Premiums are based on payroll, which can be accurately determined only when the policy expires, so final premium can differ from estimated premium.
Conditions
Typical provisions relating to the first named insured. Such as: cancellation, subrogation, assignment, long-term policy, and inspections.
Voluntary Compensation Endorsement
Available to provide WC coverage to employees not covered by WC laws. Such as domestic employees and temporary workers.
Coverage Applies:
Wile conducting work on the premises when not on a break, while on a break, and while going to or from a job site, but not to or from work.
The Jones Act
Allows any seaman incurring bodily injury to bring suit for damages against the employer. Employer consisted of negligence, unseaworthiness of the vessel and disability income for the insured.
