Workers' Comp coverage A and Coverage B Explained
A Workers' Compensation insurance policy provides medical care, lost income and rehabilitation to employees who are injured during the course of employment.
This policy provides benefits under two sections.
Coverage A:
Is a schedule of benefits payable to an employee without regard to liability, required by state law in the case of injury, disability, or death as the result of occupational injuries or disease.
Coverage B:
Employers Liability Coverage may provide benefits for the common law liability of an employer for injuries to employees as distinguished from the liability imposed by Workers' Compensation law.
Employers liability applies in situations where a worker does not come under the Workers' Compensation laws.
It is required that all employees are protected under the Workers' Compensation Act. Therefore, employers must provide coverage at the statutory limits.
An employer may sub-contract certain operations. Compensation laws provide that the principal contractor is responsible for compensation to the employees of uninsured sub-contractors.
In determining compensation premiums, an employer will be charged premium for coverage for employees of sub-contractors unless the sub-contractors have purchased insurance and have furnished satisfactory evidence of the insurance.
Therefore, an employer should obtain certificates of insurance from all sub-contractors to confirm that Workers' Compensation insurance has been purchased.
All Workers' Compensation premiums are calculated by auditing an employer's payroll. Therefore, all payroll records should be kept in such a manner as easily demonstrate what actual payrolls have been paid.
If overtime remuneration is not accurately segregated, this payroll will be used in the calculation of the Workers' Compensation premium.
Workers' Compensation claim payments are sent directly to the injured worker and/or treating medical facility.
Upon notice of a work related injury, an employer must complete claim forms within specific time frames.
The Employee's First Report of Injury form is to be completed by the employee and the employer and must be sent to the insurer within 24 hours of notification of the injury.
The Employer's Report of Injury is completed by the employer only and must be sent to the insurer within 5 days of notification of the injury. In the case of a serious injury, illness, or death the insurer must be notified within 8 hours of the occurrence.