When insureds receive their Workers’ Compensation insurance policy, they will find the declarations (dec) page, which lists basic information, followed by an insuring agreement that provides them with a deeper dive into the policy that includes its terms and conditions, exclusions, and any endorsements that modify the agreement. Here is a brief overview of what’s on the dec page and some of the policy’s terms and conditions.
The “Dec” Page
As with any insurance policy, the dec page includes the name of the insurer, the policy number, the name of the covered party (insured), the type of company (for example, a corporation or partnership), the name of the producer (insurance agent), the policy period (when the policy begins and ends), the type of coverage (Workers’ Compensation and Employer’s Liability), a list of endorsements, estimated premium, classification codes, rates and credits, and states where coverage applies. The objective of the dec page is to provide an at-a-glance view of what’s inside the Workers’ Comp policy.
Workers’ Comp Terms and Conditions
Generally speaking, the policy terms and conditions provide detailed information about the coverage – what is included and how the insurance applies. For example, Workers’ Compensation will apply when “bodily injury by accident occurs during the policy period.” It also outlines the insurer and insured rights, the terms of insurer benefit payments, and the conditions under which the insured is responsible for payments. It explains how the premium is paid, how a Workers’ Compensation audit works, and cancellation terms.
Included in the terms and conditions section are policy exclusions. For example, the policy does not cover “punitive or exemplary damages because of bodily injury to an employee employed in violation of the law” or “bodily injury intentionally caused or aggravated by the employer.”
Endorsements are also included in the policy’s terms and conditions. An endorsement, for instance, may involve a company owner or officer requesting that he or she not be covered under the policy. Based on how the company is set up and the state in which it conducts business, owners or officers of the organization are either automatically included or excluded from coverage. If the owner or officer wants to change his or her coverage status, this must be done via a policy endorsement.
Employers should carefully review their Workers’ Compensation policies, beginning with the dec page. Along with their insurance agent, they should ensure that all policy information is correct. It’s critical to ensure employers understand the policy terms, any exclusions that may apply, and the opportunities available to endorse the policy.
About Prescient National
Prescient National offers Workers’ Compensation insurance solutions to employers based on their individual needs, risk-taking appetite, and loss history: guaranteed cost policies, small-, midsize-, and large-deductible policies, retrospective rating policies, excess/self-insurance, and captive options.
