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.