Workers’ compensation is an important safety net for workers who get hurt on the job. Employers must purchase it to make sure workers have the compensation necessary to seek medical care and to obtain benefits in the case of injury. What’s important to understand is that there are limits to a workers’ compensation policy, just as there are with car insurance plans or other types of insurance.
Workers’ compensation insurance is necessary and required in each state, but the required coverage limits vary. For instance, in New York, it’s necessary to buy workers’ compensation insurance when a single person is hired, whereas another state might not require it until three or more employees are hired.
These policies have two parts, part A and B. Part A has no set limit, and it pays out compensation to injured employees as designated by the Workers’ Compensation Board in the state. The second part of the plan is the employer’s liability limit. Basically, after the limit is reached, the employer may have to pay out unless he or she has purchased stopgap insurance. Your employer should purchase enough insurance to guarantee that he or she does not run out of coverage, even if that means exceeding the requirements of the state.
As someone who has been hurt on the job, you shouldn’t have to worry about whether or not your employer has enough coverage to provide you with the help you need. If you find that you can’t get the coverage you deserve, you can reach out for legal assistance and make a claim.
Source: Chron Small Business, “Policy Limits for Workers’ Comp Insurance,” Cellina LaForey, accessed Dec. 02, 2016