Workers’ Compensation (WC)
Your go-to resource for understanding the unique risks, coverage needs, and underwriting considerations related to workplace injuries — and how Merchants helps protect both employees and employers.
Workers' Compensation Coverages
The Workers’ Compensation policy provides the following coverage:
Duty to Defend
The company has the right and duty to defend at their expense any claim, proceeding, or suit against the insured for benefits payable under this insurance. The company has the right to investigate and settle these claims, proceedings or suits. There is no duty to defend a claim, proceeding or suit that is not covered by this insurance.
Employers Liability
Employers Liability coverage applies to employee injuries that are outside of the state Workers’ Compensation law. Some exclusions apply.
Other States Insurance
Unless Other States Insurance is on the Information Page of the policy, the Workers’ Compensation coverage provided applies only to benefits required by the Workers’ Compensation law of the state designated in item 3A of the policy. If an employee is injured in another state and Other States Insurance is not provided for that state, the policy will not respond. Also, employers liability coverage will also not respond because it does not apply to obligations imposed by a Workers’ Compensation law. The states applicable under the Other States Insurance are shown in item 3C of the policy.
Workers' Compensation
Workers’ Compensation coverage protects employers for claims from employee injuries arising out of their employment. Employees are covered regardless of fault. There are no exclusions as coverage is applicable per the state Workers’ Compensation law. Benefit levels for indemnity(wages), medical and rehabilitation are established by the state.
Key Employers Liability Exclusions
Contractual Liability
Any liability assumed under a contract is excluded.
Employment Practices
There is no coverage for damages due to the insured coercing, criticizing, demoting, evaluating, reassigning, disciplining, defaming, harassing, humiliating, terminating, or discriminating against any employee.
Intentional Acts
Any bodily injury the insured intentionally causes or aggravates is not covered.
Obligations Under Other Laws
Coverage does not apply to obligations under workers’ compensation, occupational disease, unemployment compensation, disability benefits, or any similar laws expose.
Punitive Damage
Punitive or exemplary damages when the reason for the award was that the injured person was employed in violation of the law are not covered.
Not all coverages may be available in all states and limits may vary by state. For specific details, please refer to the appropriate Merchants form, which can be found in the Company Forms Library on Merchants website.
