What Does Workers' Compensation, Coverage A Mean?
Workers' compensation coverage A, part one of workers' compensation insurance, provides disability and vocational rehabilitation, medical care, and death benefits to employees who suffer an injury or get killed on the job. The insurance company pays all benefits and compensation as mandated by the insured employer's state laws for workers' compensation. The premium is computed with the company payroll and the nature of the employees' work in mind.
Insuranceopedia Explains Workers' Compensation, Coverage A
In almost all of the United States, state law mandates the benefits under workers' compensation insurance. As long as the employee is not under the influence of drugs, benefits are typically payable without question, which is why some places of employment require routine drug testing, besides safety concerns. To pay for this coverage, employers set aside a substantial amount for the premiums. An employer who fails to cover their employees faces the greater risk of paying all the benefits out-of-pocket as well other penalties for violation of state laws.