Workers' Compensation Coverage A

DEFINITION of 'Workers' Compensation Coverage A'

Insurance that protects employees under state laws, and provides medical care, death, disability and rehabilitation benefits for workers who are injured or killed while on the job. The insurer agrees to pay all compensation and benefits related to the insured employer's state's workers' compensation laws. Workers' compensation coverage premiums are based on the employer's payroll and the type of duties its employees perform.

BREAKING DOWN 'Workers' Compensation Coverage A'

Workers' compensation insurance is a significant expense for employers, and is legally mandated in nearly every state in the United States. Employers may pay more if the company has had a certain number of previous claims, or if its employees have certain occupations that are deemed dangerous.


Benefits of workers' compensation are generally awarded on a no-fault basis, as long as the employee is not under the influence of drugs, including alcohol. Employees are usually required to submit to a drug test following an on-the-job accident. Many workers' compensation incidents will provide partial reimbursement of lost wages, and survivor benefits in the event the worker is killed while on the job.

RELATED TERMS
  1. Workers' Compensation

    Workers' compensation is a publicly-sponsored system that pays ...
  2. Employer's Liability Insurance

    A product for employers that protects them from major financial ...
  3. Workers' Compensation Coverage ...

    An insurance policy that covers medical care, lost income and ...
  4. Workers' Compensation Catastrophe ...

    A type of loss reinsurance that is purchased by insurers of workers' ...
  5. Highly Compensated Employee

    For employer-sponsored, tax-advantaged retirement plan purposes, ...
  6. Unemployment Compensation

    Funds paid by the state to unemployed workers who have lost their ...
Related Articles
  1. Retirement

    6 Benefits You're Required by Law to Offer Your Employees

    Learn about the benefits that a business must offer to employees, such as family and medical leave, as well as various forms of insurance coverage.
  2. Financial Advisor

    What Kind of Insurance Do RIAs Need?

    Advisors spend a lot of time discussing insurance with clients but they also need to consider their own coverage needs as small-business owners
  3. Personal Finance

    Hiring? Regulations Small Businesses Need to Know

    When a small business becomes an employer, it has new responsibilities. Make sure you familiarize yourself with regulatory requirements.
  4. Personal Finance

    What's Compulsory Insurance?

    Compulsory insurance is insurance a person or business is legally required to buy.
  5. Personal Finance

    Selecting The Right Mix Of Insurance Benefits

    Choosing employee benefits involves weighing the probability you will need them against taxes and cost.
  6. Entrepreneurship & Small Business

    7 HR Basics for Small Businesses

    Whether or not you are a fan of human resources, every employer needs to know the answers to these questions.
  7. Retirement

    When Do Social Security Benefits Start and End?

    Everything you need to know about the three primary Social Security programs, how they work and who qualifies for them.
  8. Financial Advisor

    How to Help Clients Navigate Open Enrollment

    With companies trying to pass on more costs to employees, making the right choices during open enrollment is more important than ever.
  9. Financial Advisor

    Life Insurance Plans to Help Your Small Business Retain Employees

    How to use and design cash value life insurance plans as an incentive to help attract and retain key employees.
  10. Personal Finance

    Yes, You Can Still Expect Health Insurance at Work

    A recent report from The New York Times says that health plans offered by employers are here to stay, despite the passage of the Affordable Care Act.
RELATED FAQS
  1. Will a 10-99 form make my taxes higher?

    My employer is not withholding taxes each pay day. Will this increase my taxes because they will give ... Read Answer >>
  2. How does the Bureau of Labor Statistics define contingent workers?

    Discover how contingent workers are a significant part of the labor force and are defined as persons who do not expect their ... Read Answer >>
  3. What are some examples of common fringe benefits?

    Learn how offering fringe benefits can be a strategic recruitment and retention tool for employers and drastically increase ... Read Answer >>
  4. Are part-time employees eligible for fringe benefits?

    Learn how offering fringe benefits allows employers to entice new talent to join their teams, although part-time workers ... Read Answer >>
  5. Can you fund nonqualified deferred compensation plans with life insurance?

    Understand if a person can fund nonqualified deferred compensation plans with life insurance. Learn what types of plans are ... Read Answer >>
  6. What types of regulations are in place regarding fringe benefits?

    Read about the types of regulations that impact employee fringe benefits in the United States, including benefits mandated ... Read Answer >>
Hot Definitions
  1. Duration

    A measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates. ...
  2. Dove

    An economic policy advisor who promotes monetary policies that involve the maintenance of low interest rates, believing that ...
  3. Cyclical Stock

    An equity security whose price is affected by ups and downs in the overall economy. Cyclical stocks typically relate to companies ...
  4. Front Running

    The unethical practice of a broker trading an equity based on information from the analyst department before his or her clients ...
  5. After-Hours Trading - AHT

    Trading after regular trading hours on the major exchanges. The increasing popularity of electronic communication networks ...
  6. Omnibus Account

    An account between two futures merchants (brokers). It involves the transaction of individual accounts which are combined ...
Trading Center