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 provides statutory workers' compensation benefits; Part Two provides employers liability coverage for suits not covered by the WC system
b.Part One covers California injuries; Part Two covers out-of-state injuries
c.Part One covers medical only; Part Two covers wage loss only
d.Part One covers employees; Part Two covers independent contractors
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.
Law Reference: Standard WC Policy — Part One / Part TwoPractice all 215 questions free — no signup required.
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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