All workers in the United States are covered by the Workers' Compensation Law. When an employee dies or becomes injured while working, the worker's compensation law requires that worker's compensation insurance be paid to the person or his or her surviving spouse and/or dependents. The insurance only applies to injuries and disabilities related to one's job ("What is Worker's Compensation?" 2008) Liability insurance, on the other hand, simply protects a firm from being held responsible for the other party's losses -- whether financial, physical, or otherwise. Liability insurance, unlike worker's compensation insurance, is not required by law ("What is Liability Insurance" 2008).
Occurrence claims policies and claims-made policies are two kinds of liability insurances that can be purchased by an individual or small company. Occurrence claims policies require insurance companies to pay for claims that occur during the period of coverage, regardless of when the claim occurred, while claims-made policies only require insurance companies to pay for claims made, or reported, during the period of coverage (Glendenning 2007).
References
Choosing the Right Health...
2008. Retrieved August 8, 2008, from Find Law Web Site: http://smallbusiness.findlaw.com/employment-employer/employment-employer-benefits/employment-employer-benefits-basics-health.html
How Does Insurance Work. (n.d.) Retrieved August 8, 2008, from Super Pages Web Site: http://www.superpages.com/supertips/how-does-insurance-work.html
Managed Health Care Plans 2008. Retrieved August 8, 2008, from American Heart
Association Web Site: http://www.americanheart.org/presenter.jhtml?identifier=4663
Glendenning, Anna. The Difference Between Claims Made and Occurrence Liability
Policies. (2007). Retrieved August 8, 200, from Families.com Web Site: http://insurance.families.com/blog/the-difference-between-claims-made-and-occurrence-liability-policies
What is Worker's Compensation? (n.d.). Retrieved August 8, 2008, from Governor's
Office of Employee Relations Web Site: http://www.goer.state.ny.us/Benefits/workerscomp.html
What is Liability Insurance? (n.d.). Retrieved August 8, 2008, from Wise Geek.com Web
Site: http://www.wisegeek.com/what-is-liability-insurance.htm
