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16.5 Workers' Compensation and Employers Liability Insurance Policy

Most states use the standard Workers' Compensation and Employers Liability Policy developed by the National Council on Compensation Insurance (NCCI). The policy is only six pages long because the specific benefits provided are determined by each state's Workers' Compensation laws rather than the policy itself. The standard policy consists of the following sections:

  • General Section – Defines key terms and explains how the policy applies.
  • Part One – Workers' Compensation Insurance – Covers benefits required by state Workers' Compensation laws.
  • Part Two – Employers Liability Insurance – Covers the employer's legal liability for certain employee injury claims not covered by Workers' Compensation.
  • Part Three – Other States Insurance – Extends coverage to employees who begin working in eligible states not listed in the policy.
  • Part Four – Your Duties If Injury Occurs – Outlines the employer's responsibilities after a workplace injury.
  • Part Five – Premium – Explains how the premium is calculated and adjusted.
  • Part Six – Conditions – Describes the policy's terms, rights, and obligations.

General Section​

The General Section explains the policy's basic provisions, including key definitions, how the policy applies, and the rights and responsibilities of both the insurer and the employer. It provides the foundation for understanding the coverage described in the remaining sections of the policy.

The Policy​

The Workers' Compensation and Employers Liability policy is a legal contract between the employer and the insurer. Its terms cannot be changed or waived unless the change is made through a formal policy endorsement.

Who Is Insured​

The employer is the named insured under a Workers' Compensation and Employers Liability policy and is the party covered by the policy's protections and obligations.

Workers’ Compensation Law​

The policy applies to the Workers' Compensation laws of each state or territory listed on the Information Page (Declarations Page). In general, an injured employee is entitled to the benefits required by the state in which the workplace injury occurs.

State​

In the policy, the term state includes all U.S. states and the District of Columbia, unless otherwise specified.

Locations​

The policy provides coverage for the workplaces, business locations, and states listed on the Information Page (Declarations Page). Coverage applies only to the operations and locations identified in the policy.