Employer-based Workers Compensation Insurance Policy
A Employer-based Workers Compensation Insurance Policy is a organizational insurance policy that provides workers compensation benefits for worker's comp. related incidents (such aswork-related injury and work-related illness).
- AKA: Workers' Compensation.
- Context:
- It can (typically) have a price of a Workers Compensation Insurance Policy Premium.
- It can (often) be sold by a Workers Compensation Insurance Organization, such as a workers comp. insurance company.
- It can range from being an External Orgnaization-provided Workers Compensation Insurance Policy (such as a workers compensation insurance company) to being a Self-Provided Workers Compensation Insurance Policy.
- …
- It can (typically) include Workers Comp Benefits, such as:
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- Example(s):
- Counter-Example(s):
- See: Occupational Hazard Insurance, Punitive Damages, Business Insurance, Insurance Provider, Provision (Contracting), Disability Insurance, Pain and Suffering, High-Risk Industry, Policy Premium.
References
2021
- (Wikipedia, 2021) ⇒ https://en.wikipedia.org/wiki/Workers'_compensation Retrieved:2021-3-19.
- Workers' compensation or workers' comp (formerly workmen's compensation until the name was changed to make it gender-neutral) is a form of insurance providing wage replacement and medical benefits to employees injured in the course of employment in exchange for mandatory relinquishment of the employee's right to sue his or her employer for the tort of negligence. The trade-off between assured, limited coverage and lack of recourse outside the worker compensation system is known as "the compensation bargain". One of the problems that the compensation bargain solved is the problem of employers becoming insolvent as a result of high damage awards. The system of collective liability was created to prevent that, and thus to ensure security of compensation to the workers. Individual immunity is the necessary corollary to collective liability.
While plans differ among jurisdictions, provision can be made for weekly payments in place of wages (functioning in this case as a form of disability insurance), compensation for economic loss (past and future), reimbursement or payment of medical and like expenses (functioning in this case as a form of health insurance), and benefits payable to the dependents of workers killed during employment.
General damage for pain and suffering, and punitive damages for employer negligence, are generally not available in workers' compensation plans, and negligence is generally not an issue in the case.
- Workers' compensation or workers' comp (formerly workmen's compensation until the name was changed to make it gender-neutral) is a form of insurance providing wage replacement and medical benefits to employees injured in the course of employment in exchange for mandatory relinquishment of the employee's right to sue his or her employer for the tort of negligence. The trade-off between assured, limited coverage and lack of recourse outside the worker compensation system is known as "the compensation bargain". One of the problems that the compensation bargain solved is the problem of employers becoming insolvent as a result of high damage awards. The system of collective liability was created to prevent that, and thus to ensure security of compensation to the workers. Individual immunity is the necessary corollary to collective liability.
2020
- https://www.strongtieinsurance.com/what-you-need-to-know-about-occupational-hazard-insurance/
- QUOTE: ... Occupational hazard insurance is most easily defined as a policy that offers benefits to workers who aren’t covered under a workers’ compensation policy. A massive amount of trucking companies use independent contractors and owner-operators to make deliveries. Occupational hazard policies provide benefits to truckers who aren’t officially employees. Not only does this help protect the trucker, but this helps protect the trucking company. In some states, owner-operators can assert that they are wrongfully classified as independent contractors and file an injury claim against the company.
Some states also allow employers to opt-out of their state’s workers’ compensation programs. The employer still has the same legal obligation to employees who are injured on the job. Occupational hazard insurance programs are often more customizable and less expensive than their workers’ compensation counterparts. …
- QUOTE: ... Occupational hazard insurance is most easily defined as a policy that offers benefits to workers who aren’t covered under a workers’ compensation policy. A massive amount of trucking companies use independent contractors and owner-operators to make deliveries. Occupational hazard policies provide benefits to truckers who aren’t officially employees. Not only does this help protect the trucker, but this helps protect the trucking company. In some states, owner-operators can assert that they are wrongfully classified as independent contractors and file an injury claim against the company.
2020
- https://linkedin.com/company/state-compensation-insurance-fund/
- QUOTE: State Fund is California’s leading provider of workers’ compensation insurance. Not for profit and funded solely by premiums and investment income, we’ve supported California’s entrepreneurial spirit and played a vital role in the state’s economy for more than 100 years. By innovating in areas such as workplace safety and injured worker care, we’re committed to serving California for the next 100 as well. To learn more or get a quote, contact your broker or visit www.StateFundCA.com. …
2019
- https://www.thehartford.com/workers-compensation/benefits
- QUOTE: What Are the 5 Types of State Workers’ Compensation Benefits?
- If your employee suffers a work-related injury or illness, workers’ comp benefits can help cover:
- Medical expenses to treat their injury.
- Ongoing care to help them recover from their injury and return to work.
- Death and funeral expenses if they pass away.
- Lost wage replacement if they take recovery time away from work.
- Disability benefits if your employees get fully or partially disabled working on the job.
- Keep in mind that workers’ compensation benefits aren’t available for employees if they:
- Get hurt or injured outside of work.
- Are intoxicated during an accident.
- Intentionally injure themselves.
2019
- https://mslawllp.com/faqs/disability-insurance-faqs/
- QUOTE: What Is the Difference Between an Individual and an Employer-Provided Disability Insurance Policy?
- How an insured obtained his or her disability insurance coverage plays a large role in determining which law governs the dispute, and in turn which remedies are available.
First, if an insured purchased the insurance policy directly from an insurance company – for example, through an insurance agent, insurance broker or trade association – the insured owns an “individual disability insurance policy,” and state law will govern the processing of the claim and any resulting litigation. In California, this means that an insurance company can be liable for breach of contract and breach of the implied convent of good faith and fair dealing (also known as “bad faith”). Through the bad faith cause of action, the insured can possibly collect emotional distress damages, foreseeable financial losses and certain attorneys’ fees incurred to force the insurance company to pay the policy benefits. Further, the insurer can be liable for punitive damages, if there is evidence the insurance company acted with malice, oppression or fraud. (For more information about “bad faith,” please visit our bad faith FAQ (https://mslawllp.com/faqs/insurance-bad-faith-faqs/.)
Second, if the disability insurance was provided as a benefit of employment, in most cases, the disability insurance claim will be governed by a federal law called the Employee Retirement Income Security Act of 1974 or ERISA. This means that almost all employee benefits plans that provide such benefits as health insurance, life insurance or disability insurance are regulated under ERISA. Unlike California state law, under ERISA, the claimant is not entitled to collect future benefits, bad faith or punitive damages. However, if the claimant prevails at trial, in addition to past-due benefits and interest, the ERISA administrator will likely be liable for all of the attorneys’ fees incurred in litigation. (For more information about ERISA, please visit our ERISA FAQ https://mslawllp.com/faqs/erisa-faqs/.)
- How an insured obtained his or her disability insurance coverage plays a large role in determining which law governs the dispute, and in turn which remedies are available.
- QUOTE: What Is the Difference Between an Individual and an Employer-Provided Disability Insurance Policy?