What are the two basic forms of coverage typically combined in a workers' compensation policy?

In a workers' compensation policy, the two basic forms of coverage are workers' compensation and employers liability. Workers' compensation provides benefits to employees who are injured or become ill due to their job, covering medical expenses, rehabilitation, and lost wages. This coverage is designed to prevent lawsuits against the employer, as employees relinquish the right to sue in exchange for the benefits provided.

Employers liability coverage complements workers' compensation by protecting employers from lawsuits that may arise from job-related injuries or illnesses that are not covered under the workers' compensation act. This can include claims for negligence, intentional harm, or situations where the injury leads employees to seek damages beyond the statutory benefits.

The combination of these two forms is essential for providing comprehensive protection to both employees and employers in the workplace. This coverage structure ensures that employees receive necessary support while simultaneously safeguarding employers against potential legal claims.