Workers Compensation Coverages

Question 1

Workers Compensation

Answer 1

Workers compensation is a type of insurance that covers the medical expenses of injured workers from work-related accidents and also compensates them for any lost income resulting from work-related injuries.
Regardless of who is at fault for the accident.

Question 2

Statutory limits

Answer 2

Each state decides the minimum limits to be paid out by workers compensation policies for businesses operating in the state.

Question 3

Employers’ Liability

Answer 3

Employers’ Liability: insurance that protects employers from employees’ lawsuits over work-related injuries, illnesses, or occupational diseases.
Only pays out if an employee sues the employer for negligence. If some action or inaction by the employer contributed to the accident, then the employee may sue for punitive damages, which would be covered by Employer’s Liability.