Workers Comp Flashcards
What should business partners who want to be covered under a workers compensation policy covering their employees do if they want to also be protected for job-related injuries?
Add the sole proprietors, partners, officers, and others coverage endorsement to their workers compensation policy.
The sole proprietors, partners, officers, and others coverage endorsement is used when, in accord with state law, a partner has elected to become subject to the state’s workers compensation law.
A workers compensation insurance policy with an Outer Continental Shelf Lands Act Coverage endorsement excludes coverage for workers subject to all the following legislation EXCEPT:
The endorsement provides workers compensation and employers liability coverage for workers subject to the Outer Continental Shelf Lands Act and specifically excludes coverage for other Acts that can be addressed with other endorsements.
When the Maritime Coverage Endorsement (WC 00 02 01 A) is added to a workers compensation policy:
employer liability coverage is provided for insureds with true maritime exposures
To verify that reported payroll amounts are accurate, a workers compensation insurer has the right to audit the insured’s payroll records:
anytime during regular business hours, up to three years after the policy period ends
A workers compensation insurer has the right to audit the insured’s payroll records relating to the policy (e.g., ledgers, journals, vouchers, contracts, tax reports, payroll and disbursement records) anytime during regular business hours up to three years after the policy period ends.
XYZ’s workers compensation policy lists the insured as “Les Smith and Hiram Jones, a partnership doing business as XYZ.” This firm is a new venture for Les and Hiram, both of whom also operate other businesses. For whom does XYZ’s workers compensation policy provide coverage?
Les and Hiram, but only for injuries to XYZ’s employees
An employee of Company was injured after a supervisor intentionally disabled safety equipment to speed up production. Due to this willful misconduct, a court ordered Company to pay punitive damages in addition to workers compensation benefits. In this case, the workers compensation insurer is obligated to pay:
workers compensation benefits but not punitive damages.
If sub-contractor ABC signs a contract with general contractor DEF in which it agrees to hold DEF harmless for any injuries to ABC’s employees, how should ABC modify its workers compensation policy to ensure it has proper liability coverage?
add the Waiver of Our Right to Recover from Others Endorsement (WC 00 03 13)
The owner of the Marlon Corporation is surprised when ABS Insurance Company (Marlon’s workers compensation insurer) insists on inspecting Marlon’s workplace. ABS points out that:
the workers compensation and employer liability insurance policy gives ABS the right to inspect Marlon’s workplace
Employer is headquartered in Minnesota (which is listed in item 3.A. of its workers compensation policy), but its employees are apt to travel to any other state for various business reasons. In this case, the most appropriate entry for Item 3.C., “Other States Insurance,” is:
“all states and U.S. territories except North Dakota, Ohio, Washington, West Virginia, Wyoming, Puerto Rico, the U.S. Virgin Islands, and Minnesota”
Employer is apt to do business in any state, so instead of choosing which states to name, Item 3.c. should say “all states except” and then list the monopolistic states and territories and the states designated in Item 3A (Minnesota in this example).
