Workers' CompensationQuestion 202 of 215
The standard Workers' Compensation and Employers Liability policy is divided into two main coverage parts. What does each part cover?
a.Part One covers medical only; Part Two covers wage loss only
b.Part One covers California injuries; Part Two covers out-of-state injuries
c.Part One covers employees; Part Two covers independent contractors
d.Part One provides statutory workers' compensation benefits; Part Two provides employers liability coverage for suits not covered by the WC system
Explanation
Part One — Workers' Compensation pays the statutory benefits required by the state's WC law and has no dollar limit because the obligation is whatever the statute requires. Part Two — Employers Liability protects the employer against employee-related lawsuits that fall outside the WC system, such as dual-capacity, consequential-bodily-injury, third-party-over, and loss-of-consortium suits.
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Related questions on this topic
- Under California Labor Code §3700, which employers are required to carry workers' compensation insurance?
- Workers' compensation in California is best described as which type of system?
- What is a possible penalty when a California employer is found operating without required workers' compensation coverage?
- What is the California minimum limit typically required for Part Two — Employers Liability coverage?
- An injured employee unable to work while recovering from a workplace injury is entitled to temporary disability (TD) benefits. How is the TD rate generally calculated?
- Permanent disability (PD) benefits in California are paid based on what factor?
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