Workers' Compensation Catastrophe Cover

AAA

DEFINITION of 'Workers' Compensation Catastrophe Cover'

A type of loss reinsurance that is purchased by insurers of workers' compensation to protect against losses that result from a single catastrophic event or a series of events involving multiple workers. Workers' compensation catastrophe coverage is used to limit costs when a catastrophic event results in multiple claims. Workers' compensation is a type of insurance that provides medical benefits and wage replacement for employees who are injured while on the job. Benefits may be available to the spouse and dependents of employees who are killed while at work.

BREAKING DOWN 'Workers' Compensation Catastrophe Cover'

Workers' compensation catastrophe cover is reinsurance that responds to disaster or multi-claimant loss. The insurance industry was forced to evaluate and make improvements to this type of coverage following the catastrophic events of September 11, 2001. Rates for this type of reinsurance have become multiples of pre-September 11 levels.

RELATED TERMS
  1. Workers' Compensation Coverage ...

    An insurance policy that covers medical care, lost income and ...
  2. Against All Risks - AAR

    An insurance policy that provides coverage against all types ...
  3. Workers' Compensation

    A state-sponsored system that pays monetary benefits to workers ...
  4. Catastrophe Excess Reinsurance

    Insurance for catastrophe insurers. Because of the unpredictable ...
  5. Reinsurance

    The practice of insurers transferring portions of risk portfolios ...
  6. Hazard Insurance

    Insurance that protects a property owner against damage caused ...
Related Articles
  1. Retirement

    Job Hunting: Higher Pay Vs. Better Benefits

    Focusing on salary may be a mistake. Find out which benefits have the highest long-run payoff.
  2. Home & Auto

    Selecting The Right Mix Of Insurance Benefits

    Choosing employee benefits involves weighing the probability you will need them against taxes and cost.
  3. Options & Futures

    Benefit Issues When Your Employer Goes Bankrupt

    There are some safeguards in place to ensure that health benefits don't just disappear when a plan is canceled.
  4. Personal Finance

    Employee Benefits: How To Know What To Choose

    Starting a new job is stressful but you don't need to sweat about setting up a benefits package.
  5. Personal Finance

    How To Get That Entry-Level Financial Analyst Job

    Landing a job as a financial analyst takes study, strategy and a lot of hard work. Here's how to hone your competitive edge.
  6. Economics

    Explaining the Balanced Scorecard

    A balanced scorecard is a metric that measures a business’ performance.
  7. Investing News

    Employee Or Contractor? An On-Demand Economy Problem

    Several on-demand economy startups classify, or classified, their workers as contractors rather than employees. It is an unconventional approach to hiring and has been a hit with venture capitalists ...
  8. Investing Basics

    What is a Public Company?

    A public company has sold stock to the public through an initial public offering (IPO) and that stock is currently traded on a public stock exchange.
  9. Savings

    All About Income

    Income is the money you or a business earns by providing goods or services, or through investments.
  10. Investing

    3 Ways to Monetize Your Expertise

    Anyone can make money from sharing their knowledge with others.
RELATED FAQS
  1. What protections are in place for a whistleblower?

    Whistleblowers can play a critical role in ensuring the compliance, safety, honesty and legal fairness of governments and ... Read Full Answer >>
  2. Does my employer's matching contribution count towards the maximum I can contribute ...

    Contributions to 401(k) plans come from employee salary deferral and employer match dollars. According to the IRS, employees ... Read Full Answer >>
  3. How is marginal propensity to save calculated?

    Marginal propensity to save is used in Keynesian macroeconomics to quantify the relationship between changes in income and ... Read Full Answer >>
  4. How do modern companies assess business risk?

    Before a business can assess or mitigate business risk, it must first identify probable or likely risks to its bottom line. ... Read Full Answer >>
  5. Why has emphasis on corporate governance grown in the 21st century?

    Corporate governance refers to operational practices, management protocols, and other governing rules or principles by which ... Read Full Answer >>
  6. What should a whistleblower do if their employer retaliates?

    Although specifically prohibited by employment law, employer retaliation against whistleblowers for exposing employers' wrongdoings ... Read Full Answer >>

You May Also Like

Hot Definitions
  1. Election Period

    The period of time during which an investor who owns an extendable or retractable bond must indicate to the issuer whether ...
  2. Shanghai Stock Exchange

    The largest stock exchange in mainland China, the Shanghai Stock Exchange is a nonprofit organization run by the China Securities ...
  3. Dead Cat Bounce

    A temporary recovery from a prolonged decline or bear market, followed by the continuation of the downtrend. A dead cat bounce ...
  4. Bear Market

    A market condition in which the prices of securities are falling, and widespread pessimism causes the negative sentiment ...
  5. Alligator Spread

    An unprofitable spread that occurs as a result of large commissions charged on the transaction, regardless of favorable market ...
  6. Tiger Cub Economies

    The four Southeast Asian economies of Indonesia, Malaysia, the Philippines and Thailand. Tiger cub economy indicates that ...
Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!