Texas General Lines — Property and CasualtyCommercial LinesMedium
A construction company has a Workers' Compensation policy. An employee, while operating heavy machinery on a job site, suffers a severe injury that requires extensive medical treatment and results in several months of lost wages. Which part of the Workers' Compensation policy would cover the employee’s lost wages?
- AEmployers Liability
- BMedical Benefits
- CRehabilitation Benefits
- DIncome Benefits
Show answer & explanationAnswer & explanation
Correct answer: D. Income Benefits
Workers' Compensation policies provide various benefits. Income Benefits specifically cover lost wages due to a work-related injury or illness, compensating the employee for the time they are unable to work.
Why the other options are wrong
- A. Employers Liability covers the employer's legal liability for work-related injuries not covered by statutory workers' compensation laws.
- B. Medical Benefits cover the cost of medical treatment for the injury, not lost wages.
- C. Rehabilitation Benefits cover physical and vocational rehabilitation services, not directly lost wages.
Workers' Compensation Income Benefits
A component of Workers' Compensation insurance that provides compensation to employees for a portion of their lost wages due to a work-related injury or illness that prevents them from working.
- Replaces a percentage of the employee's average weekly wage.
- Paid for temporary or permanent disability.
- Subject to state-specific maximums and waiting periods.
Memory trick: When an injury strikes, Workers' Comp brings the 'MIRL' of benefits.