Workers Compensation coverage is standard because of state mandates but variances occur because each state establishes its own workers’ compensation statute. In addition, there are federal laws that must be taken into consideration whenever a non-federal employer works in an area that is under the control of the federal authorities. The coverage is definitely not one size fits all. Find out what customized coverage works for your company.
Workers Compensation and Employers Liability
Part A covers all injuries and diseases that must be covered according to the individual state workers compensation statutes. All benefits are paid in accordance with the schedule provided by the states. Part B covers the liability that may be imposed beyond the state statutes subject to the exclusions and conditions of the policy. The National Council of Compensation Insurers provides a standard form that is a model for all member companies to use. Certain states have alternatives but all are fairly similar. Part A is mandatory and dictated by the states; however, Part B is more insurer-defined and should be compared by carrier, particularly the exclusions.
Longshore and Harbor Workers Coverage
Covers workers or maritime employees in positions such as longshoremen, harbor workers, shipbuilders, ship-breakers, ship repairers or other employees engaged in loading, unloading, repairing or building vessels. It also covers employees who work on navigable waters, adjoining piers, wharves, dry docks, terminals, building ways and marine railways. It does not cover masters, captains, or crews of vessels unless further endorsed to voluntarily cover those positions. Coverage is provided by an endorsement to the workers compensation policy.
Stop Gap or Employers Liability Coverage
There are gaps between the Workers Compensation policy and the CGL which can leave an insured uncovered. In most states the carriers attempt to correct these by use of the employers liability coverage. However, in monopolistic states, the Workers Compensation carrier is the state so the CGL carrier is the one who attempts to fill the gap. Coverage may be offered as a stand alone policy or as an endorsement to the CGL policy.
Voluntary Compensation
Each state has a definition as to who must be covered and who is exempt under Workers Compensation. The employer then has the opportunity to include the exempt employees using the voluntary compensation endorsement.
