Examining Worker’s Compensation
Both the employers and employees have responsibilities in knowing more about their compensation and the coverage policies along with it. It is important for the employers to know the coverages to gauge how much money they are going to put in it for the benefit of their workers.
Similarly, the employees must be familiar with the compensations in order for them to know what they can get from the companies they work for in the event of injuries.
This aspect of the work is important to have mutual trust between the employers and employees.
Stephen Vaughn from Insurance Agency and London Insurance Agency briefly outlined the workers’ compensation. The state of Kentucky has a law requiring every Kentucky employer with employees to purchase a worker’s compensation policy. Most people would get a policy and stop there. They consider themselves taken care of, they’ve already met the requirement and that’s it. However, that’s not always the case. Getting the policy is not enough, it’s equally important to learn how to use it and when to use it.
The Kentucky workers compensation policy has three coverages: Part A, B, and C.
Part A is a workers compensation. It is an unlimited benefit with medical expenses of your injured employees. Part B is the section entitled Employers’ liability. Part C is called Other State Coverage.
Let’s talk further about Part B. Part B is an important coverage because the spouse or dependents, or even the third party can make a claim against an injured employee’s employer for damages. It is often an overlooked coverage.
The state only requires a minimal amount of coverage for this but it’s important that you have extra protection. It is suggested that you should purchase at least $1 Million worth of coverage for part B because it’s dangerous territory when you have spouses, dependent, and third parties coming after you as an employer for damages for the injured employee.
Now for Part C or the Other State coverage. In Kentucky, most carriers say that if you have a Kentucky employee that is from another state on a part time basis, they will be given Kentucky benefits. However, the policy does not define what part time basis is. Also, if you bill into other states and you hire an employee from another state without the proper endorsement, your worker’s compensation coverage may be null and void. So it’s extremely important to have handed discussions with your agent about where your employees are hired, where they’re going to be working, and for how long.
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Also, watch this video to understand more of this three – part coverage.