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.

Investopedia explains '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.



comments powered by Disqus
Hot Definitions
  1. Takeover

    A corporate action where an acquiring company makes a bid for an acquiree. If the target company is publicly traded, the acquiring company will make an offer for the outstanding shares.
  2. Harvest Strategy

    A strategy in which investment in a particular line of business is reduced or eliminated because the revenue brought in by additional investment would not warrant the expense. A harvest strategy is employed when a line of business is considered to be a cash cow, meaning that the brand is mature and is unlikely to grow if more investment is added.
  3. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will be executed at a specified price (or better) after a given stop price has been reached. Once the stop price is reached, the stop-limit order becomes a limit order to buy (or sell) at the limit price or better.
  4. Pareto Principle

    A principle, named after economist Vilfredo Pareto, that specifies an unequal relationship between inputs and outputs. The principle states that, for many phenomena, 20% of invested input is responsible for 80% of the results obtained. Put another way, 80% of consequences stem from 20% of the causes.
  5. Pareto Principle

    A principle, named after economist Vilfredo Pareto, that specifies an unequal relationship between inputs and outputs. The principle states that, for many phenomena, 20% of invested input is responsible for 80% of the results obtained. Put another way, 80% of consequences stem from 20% of the causes.
  6. Budget Deficit

    A status of financial health in which expenditures exceed revenue. The term "budget deficit" is most commonly used to refer to government spending rather than business or individual spending. When referring to accrued federal government deficits, the term "national debt” is used.
Trading Center