Workers Compensation
 Outside the home, the workplace is the most common place for a person to be injured. Therefore, all states have passed laws requiring employers to handle certain losses that happen at work. In other words, states have created a statutory (written or enacted) obligation to provide coverage.
The Workers Compensation And Employers Liability Insurance Policy is used to provide insurance coverage for a company's statutory liability (coverage responsibility) under a Workers Compensation Act. It usually involves paying for medical treatment and disability. It also handles lawsuits from injured workers that fall outside of the Acts.
 Essentially
a Workers Compensation Policy responds to mandatory benefits
for accidental injury that occurs during work. However, the injury
must also be related to the injured person's duties. Further,
the policy also covers costs associated with disease or death
that may be a result of the accident. If the employee's injury
does not qualify for compensation under the Workers Compensation
Acts (or Occupational Disease Acts, if separate) the policy will
respond to the employee's allegation of employer negligence.
The insurance coverage provided by the basic policy may be expanded,
restricted, clarified or brought into compliance with specific
state regulatory requirements through the use of endorsements.
The type of business that can be insured with a Workers Comp
Policy may be an individual, partnership, joint venture, corporation,
association, fiduciary, or other entity. A typical policy lists
the locations of the workplaces that are covered. The policy
is designed to handle work-related accidents, as well as diseases.
The amounts that must be paid are defined by the state or jurisdiction
where a covered incident occurs. The policy usually lists the
other types of costs and expenses that are eligible for payment
under the policy.
In other respects, a Workers Compensation Policy is similar
to other kinds of insurance. The policy benefits include being
provided a legal defense against certain types of lawsuits. The
policy explains that, when other sources of loss payment are
available, the policy will begin any payment once the other source
has paid its obligation. However, the policy will not pay for
any amounts that exceed stated benefit amounts. Generally the
insurer that provides coverage acquires the covered company's
legal right to pursue payment from a party that may have been
responsible for a workplace injury.
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