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Understanding your workers’ compensation coverage A plan

On Behalf of | Mar 24, 2023 | Workers' Compensation

There are different coverage options in the world of workers’ compensation. For instance, workers’ compensation coverage A refers to a policy that protects employees under state laws, providing them with medical care, disability, death, and rehabilitation if they are injured or killed while working. New Jersey employees and employers should know about workers’ compensation options.

What is workers’ compensation coverage A?

When an employee is injured or killed while on the job, state and federal laws require their employer to offer them some workers’ compensation. Under workers’ compensation coverage A plans, employers provide employees or their survivors with funds that cover medical costs, lost wages, rehab costs, and more. Coverage A plans are designed to satisfy the laws of the state where the business operates.

What is the employer responsible for?

As there are no policy limits under workers’ compensation Part A plans, the insurer is responsible for paying all the benefits required by the state listed in the policy declarations. There are situations in which the employer can be held responsible for payments made by the insurer that exceed the standard workers’ comp benefits. In those cases, the employer is responsible for:

• Willful misconduct

• Employing workers in violation of the law knowingly

• Failure to apply with state or federal safety standards

• Discharge, discrimination, or coercion against any employee

Difference in workers’ compensation A and B

The primary difference in workers’ compensation Part A and Part B plans is that Part B covers employees when the employer is deemed negligent, resulting in injury or death. While Part A meets each state’s requirements, Part B covers additional damages, but there are limitations in place.

Understanding different aspects of workers’ compensation is important for employers and employees.