Workers' Compensation Coverage B

DEFINITION of 'Workers' Compensation Coverage B'

An insurance policy that covers medical care, lost income and rehabilitation costs for employees who are injured on the job. Workers Compensation Coverage B provides coverage to employees when the employer is liable.
This type of workers' compensation is also called Employers' Liability Coverage. It covers:


Bodily Injury By Accident - $100,000 each accident
Bodily Injury By Disease - $500,000 policy limit
Bodily Injury By Disease - $100,000 for each employee

The coverage consists of parts A and B. Employers are required by law under the Workers' Compensation Act to provide coverage for their employees.

BREAKING DOWN 'Workers' Compensation Coverage B'

Under this type of coverage, workers who are injured on the job can be provided with 100% coverage of all medical expenses, 66.66% of lost wages, a lump sum for disability, and a disfigurement and death benefit. This coverage is required in most states if a company has three or more employees including the owners or uninsured subcontractors including their employees during one year.

RELATED TERMS
  1. Workers' Compensation

    Workers' compensation is a publicly-sponsored system that pays ...
  2. Below Full Employment Equilibrium

    A macroeconomic term used to describe a situation where an economy's ...
  3. Full Employment

    A situation in which all available labor resources are being ...
  4. Federal-State Unemployment Compensation ...

    A social safety net that provides temporary financial assistance ...
  5. Disability-Income (DI) Insurance

    An insurance product that provides supplementary income in the ...
  6. Capital Allocation

    A process of how businesses divide their financial resources ...
Related Articles
  1. Economics

    What Is Fiscal Policy?

    Learn how governments adjust taxes and spending to moderate the economy.
  2. Retirement

    The Generation Gap

    Studies suggest that young workers may not be able to retire comfortably - or at all.
  3. Professionals

    Jobless Growth: Are You Prepared?

    Economic growth doesn't always mean employment growth. Learn about how the jobless growth economy affects workers and investors.
  4. Options & Futures

    7 Ways To Avoid Self-Employed Tax Penalties

    If you follow these methods for calculating estimated tax payments, you could minimize your chances of incurring penalties.
  5. Retirement

    Thrift Savings Plan Helps Federal Workers Retire

    The TSP is key component of retirement savings for U.S. government workers and members of uniformed services.
  6. Wealth Management

    How Linked Benefit Insurance Policies Work

    Linked benefit policies can be a viable alternative to traditional long-term care insurance. Here's how they work.
  7. Savings

    Employee Wellness Perk: For Your Financial Health

    A growing number of employers offer free financial wellness programs that supply tools to help employees handle money issues and build a strong future.
  8. Your Practice

    How Boomer Advisors Can Groom Successors

    Boomer business owners need to start thinking about an exit strategy if they haven't yet done so. Here are some tips on grooming successors.
  9. Personal Finance

    The 25 Highest-Paying Companies (and Jobs) in America

    If you work for one of these 25 companies, you’re going to pull in a six-figure salary. Having the right job helps, too. Here's how to make the big money.
  10. Economics

    What Sources Of Funding Are Available To Companies?

    Despite all the differences that exist between companies, there are only a few sources of funds that are available to all firms.
RELATED FAQS
  1. How old should you be to get life insurance?

    There's really no pre-determined age when it suddenly becomes necessary to take out a life insurance policy. However, if ... Read Answer >>
  2. Why is accidental life insurance so inexpensive?

    Accidental life insurance is an inexpensive way of obtaining life insurance coverage for yourself or someone else in your ... Read Answer >>
  3. Can I borrow from my annuity to put a down payment on a house?

    Learn how you can borrow money from an annuity for a house down payment, but also understand why fees and penalties make ... Read Answer >>
  4. What is a tax-free 1035 Exchange?

    A Section 1035 Exchange refers to the replacement of an annuity or life insurance policy for a new one without incurring ... Read Answer >>
  5. What is term insurance?

    Term insurance is a type of life insurance policy that provides coverage for a certain period of time, or a specified "term" ... Read Answer >>
  6. How are life insurance proceeds taxed?

    Generally, life insurance death benefits that are paid out to a beneficiary in lump sum are not included as income to the ... Read Answer >>
Hot Definitions
  1. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  2. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
  3. Generally Accepted Accounting Principles - GAAP

    The common set of accounting principles, standards and procedures that companies use to compile their financial statements. ...
  4. DuPont Analysis

    A method of performance measurement that was started by the DuPont Corporation in the 1920s. With this method, assets are ...
  5. Call Option

    An agreement that gives an investor the right (but not the obligation) to buy a stock, bond, commodity, or other instrument ...
  6. Economies Of Scale

    Economies of scale is the cost advantage that arises with increased output of a product. Economies of scale arise because ...
Trading Center