Workers’ compensation is divided into two parts. Part A covers medical care, death, disability and rehabilitation benefits up to the Minnesota state limit. Part B provides employer liability coverage and usually comes under the employer’s umbrella liability policy. There are at least three scenarios where having both types of coverage is vital.
If you are in the construction industry or another industry that uses subcontractors, the subcontractor should cover their employees. Sometimes, however, that does not happen, but those hiring the subcontractor only learn that fact after an accident or death occurs.
In that case, the injured person or their family may expect the contractor to cover expenses, but their workers’ compensation part A will not do so because they were not employed by the company. Therefore, workers’ comp part B must pay the bills.
In some states, workers’ compensation part A will only cover workers who were injured or killed in the state where the company is located. Therefore, if you have employees who travel outside the state’s borders, you will need part B to pick up the expenses if a worker gets injured or killed.
Amounts exceeding workers’ compensation part A limits
All workers’ comp policies have precise limits on how much they will pay. Especially with the rising costs of medical care, those limits may be exhausted before the worker gets adequate care. Therefore, they could file a lawsuit against the employer to cover the rest of their expenses. Since part A is exhausted, part B covers the remaining amount.
If you are an employer, workers’ compensation part A and B could ensure that you are adequately covered if an employee gets injured or killed.