Worker's Compensation is coverage that pays for injured employees who are hurt on the job. It pays lost wages and medical bills. This coverage is required by law in many states.
A workers' Comp policy has three sections you should be familiar with:
Part 1: Pay's medical bills and lost wages of injured employee.
Part 2: Covers the employer against lawsuits resulting from negligence.
Part 3: Identifies the states that benefits apply.
Note: Do not confuse the employers liability section of workers' comp with a separate EPLI policy or Employment Practices Liability Insurance policy.