Florida 2-20 General Lines Agent (Property, Casualty, Commercial Lines and Florida Law)Casualty InsuranceMedium
A Florida plumbing contractor employs several plumbers. One of their employees sustains a severe back injury while lifting heavy pipes at a job site. The employee requires surgery, extensive physical therapy, and will be unable to work for several months. Which part of the Workers' Compensation policy would cover the employee's medical bills and lost wages?
- AVoluntary Compensation
- BEmployers Liability
- CCoverage for Other States
- DPart One - Workers' Compensation
Show answer & explanationAnswer & explanation
Correct answer: D. Part One - Workers' Compensation
Part One - Workers' Compensation, also known as Coverage A, is the core of the Workers' Compensation policy. It obligates the insurer to pay all compensation and medical benefits required of the insured by the Workers' Compensation law of the state(s) listed in the policy. This directly covers medical bills and lost wages for work-related injuries.
Why the other options are wrong
- A. Voluntary Compensation provides workers' compensation benefits to employees who are not subject to the workers' compensation law, which is not the case here.
- B. Employers Liability (Part Two) covers the employer against lawsuits for work-related injuries that fall outside of the workers' compensation statute, not the statutory benefits themselves.
- C. Coverage for Other States provides coverage for employees working in states not specifically listed in the policy, but still requires the core Part One for actual benefits.
Workers' Compensation Part One
Part One (Coverage A) of a Workers' Compensation policy covers the insurer's statutory obligation to pay benefits required by the applicable workers' compensation law for work-related injuries or illnesses.
- Covers medical costs, lost wages, and rehabilitation.
- No dollar limit (statutory limits apply).
- Applies to employees covered by the state's Workers' Compensation Act.
Memory trick: Workers' Comp has 'E.S.V.' - 'Employer, Statutory, Voluntary' parts.