WORKERS COMPENSATION
INSURANCE AND
EMPLOYERS LIABILITY INSURANCE POLICY SUMMARY
The workers compensation insurance policy consists of one section and six
parts, as follows:
GENERAL SECTION
Section indicates that the insurance
policy, the Information Page and all endorsements and schedules in effect on
the inception date represent the contract of insurance between the insured
employer and the insurance company. Defines who the insured is and
explains how the workers compensation insurance and employers liability laws of the
state apply. It also explains the meaning of workplace locations and defines
"State" to mean states of the United States and the District of Columbia.
PART ONE–WORKERS
COMPENSATION INSURANCE
Explains how the workers compensation insurance provided
applies and outlines the payments the workers compensation insurance company is obligated to
make. These include benefits required by law, costs of defense of suits
brought against the insured for benefits paid by the insurance and
additional costs incurred as a result of a claim or legal action. It
explains what happens if other insurance covers the same claim and outlines
the payments the insured must make. It also outlines the procedures in the
event of any recoveries from others and summarizes the statutory provisions
that apply in the event of loss.
PART TWO–EMPLOYERS
LIABILITY INSURANCE
Explains what employers liability
insurance is, how it applies, and outlines the payments for which the
insurance company is responsible. It provides a detailed list of exclusions
and circumstances where coverage does not apply. It outlines the
circumstances under which the insurance company will defend the insured for
suits brought due to damages paid by the insurance and details the
additional costs the insurer pays as part of any legal action it defends. It
explains what happens if other insurance covers the same claim and defines
the meaning of the terms and limits that apply to this coverage. It also
outlines the obligations of the insured in the event of recoveries from
others responsible for a covered loss and summarizes the requirements of
each party before an action can be brought against the insurance company.
PART THREE–OTHER
STATES INSURANCE
How this coverage applies
when one or more states are listed in the space provided for this coverage
on the Information Page. Coverage applies to any state listed on the
Information Page but does not apply to any other state unless the insured
reports the start of any work in that state within 30 days of it beginning.
The insured is required to immediately inform the company of the
commencement of operations in any state listed in this section on the
Information Page.
PART FOUR–YOUR
DUTIES IF INJURY OCCURS
This part outlines the duties and
responsibilities of the insured with respect to both the injured employee
and the company if an injury occurs that may be covered by the
insurance policy.
PART FIVE–PREMIUM
Explains insurance company's use
of its manuals, rules, rates, rating plans and classifications to determine
the premium charged. Method used to determine the
classifications and outlines how remuneration is used as the
basis for premium development in most cases. Requires the insured to pay
premiums when due and provides details on how the final premium is
determined. Provides details of the records the insured must maintain and
the manner in which premium audit uses those records.
PART SIX–CONDITIONS
This part outlines the right of the
company to inspect workplaces at any time and clarifies that those
inspections are not an obligation, nor serve as safety inspections. Explains that the insured cannot transfer any of its rights or duties
without the written consent of the insurance company. Details
how the policy may be cancelled by either party, and how long-term
policies are handled. Also requires the first named insured on the
Information Page to act on behalf of all insured's with respect to all policy
transactions.
The above information is
for general informational
purposes only and is
not to be construed
as a recommendation
or advice in any way
shape or form.
