Small Business Guide To Commercial Insurance

18 Coverage Sections Workers compensation insurance is divided into two coverage sections. In workers compensation part one, the insurance company agrees to promptly pay all benefits and compensation due to an injured worker by workers compensation laws of the state listed on the declarations page of the policy. In employers liability part two, the employer is protected against situations where an employee can sue for injuries suffered under common law liability (i.e., consequential bodily injury, loss of consortium, dual capacity, or third party over actions). These types of injuries in the course of employment are not covered under workers compensation law and are therefore not compensable under the workers compensation part one coverage.