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. Investing

    Who's Most Likely to Get Wall Street Bonuses?

    See what areas of finance were most likely to get you a bonus last year.
  4. Small Business

    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.
  5. Insurance

    What's Compulsory Insurance?

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

    Why Just Half of Americans Got a Raise This Year

    Just half of Americans got a raise this year, according to a new survey conducted by Bankrate for 2016. Here are some of the reasons for such a low figure.
  7. Managing Wealth

    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.
  8. 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.
  9. Insurance

    Why Employer Healthcare Costs Are Rising for Employees

    It's no illusion that health insurance is getting more expensive, and employer healthcare costs that are passed on to employees are about to go up again.
  10. 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.
RELATED FAQS
  1. 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 >>
  2. 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 >>
  3. 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 >>
  4. 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 >>
  5. What are some examples of industries that practice price discrimination?

    Understand the various types of insurance coverage offered in the insurance marketplace, and learn why each policy should ... Read Answer >>
Hot Definitions
  1. Smart Home

    A convenient home setup where appliances and devices can be automatically controlled remotely from anywhere in the world ...
  2. Efficient Frontier

    A set of optimal portfolios that offers the highest expected return for a defined level of risk or the lowest risk for a ...
  3. Basis Point (BPS)

    A unit that is equal to 1/100th of 1%, and is used to denote the change in a financial instrument. The basis point is commonly ...
  4. Initial Public Offering - IPO

    The first sale of stock by a private company to the public. IPOs are often issued by smaller, younger companies seeking the ...
  5. Border Adjustment Tax

    A tax levied on goods based on where they are sold – exported goods are exempt from tax; those imported and sold in the ...
  6. Profit and Loss Statement (P&L)

    A financial statement that summarizes the revenues, costs and expenses incurred during a specified period of time, usually ...
Trading Center