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What is workers’ compensation coverage B and how does it work?

On Behalf of | Jun 26, 2022 | Workers' Compensation |

Employees of Minnesota businesses are entitled to file for workers’ compensation if they suffer work-related injuries or illnesses. Sometimes, it’s necessary to rely on coverage B. It’s important to know what this is and how it works.

What is workers’ compensation coverage B?

Workers’ compensation coverage B is available to injured or ill workers when their main workers’ comp benefits are not enough to cover the costs of their medical treatment, lost wages and other expenses. Coverage B is paid by the employer directly as it is a type of liability coverage.

How does workers’ compensation coverage B work?

Employers are protected by coverage B in the event that an employee suffers an injury due to negligence on the part of the employer. Whatever workers’ compensation coverage A cannot pay for in full is paid for through coverage B.

Workers’ compensation coverage B can cover bodily injuries sustained in accidents and illnesses suffered on the job with specific limits. If the affected employee or a family member of the employee files a claim that goes beyond the amount that coverage A can pay for, coverage B kicks in. Sometimes, the employer may not already have workers’ compensation coverage B and is required to buy it as a protective measure.

Coverage B is covered in the following amounts:

  • Bodily injury caused by an accident is covered at $1 million for each accident.
  • Bodily injury caused by an illness carries a policy limit of $5 million.
  • Bodily injury caused by an illness is covered at $1 million per employee.

Coverage B can pay 100% toward a worker’s medical expenses, two-thirds toward lost wages and lump-sum amounts for death benefits, disability or disfigurement. It’s available for employers that have at least three regular workers.

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