Workers' Compensation Insurance
How workers' comp limits protect your business and employees
Workers' compensation has a unique limit structure. Part A (employee benefits) is typically unlimited by statute, while Part B (employer liability) has specific limits that protect your business from certain lawsuits.
Workers' compensation is actually two coverages in one policy. Part A covers statutory benefits owed to injured employees—medical care, disability payments, and death benefits as required by your state's workers' comp law. There's typically no dollar limit on Part A.
Part B, called Employers Liability, protects your business from lawsuits that fall outside the workers' comp system. This includes third-party-over actions, dual-capacity claims, and certain lawsuits by employee family members.
While Part A has no traditional limit (it pays whatever the state requires), Part B has specific limits you can choose. Standard limits are $100,000/$500,000/$100,000, but many businesses need higher protection.
Types of Coverage Limits
Part A - Workers' Compensation
Statutory (no limit)
Statutory coverage for injured employees. Pays medical expenses, lost wages, and death benefits according to state law. No dollar limit—pays whatever is legally required.
Part B - Bodily Injury by Accident
$100,000 - $1,000,000
Per-accident limit for employer liability claims from a single accident affecting one or more employees.
Part B - Bodily Injury by Disease (Per Employee)
$100,000 - $1,000,000
Maximum paid for any one employee's occupational disease claim under employer liability.
Part B - Bodily Injury by Disease (Policy Limit)
$500,000 - $1,000,000
Aggregate limit for all occupational disease claims during the policy period.
Recommended Limits by Business Size
| Business Type | Recommended Limit |
|---|---|
| Small business (1-10 employees) | $100K/$500K/$100K |
| Growing business (10-50 employees) | $500K/$500K/$500K |
| Larger/higher-risk operations | $1M/$1M/$1M |
| Construction & manufacturing | $1M/$1M/$1M minimum |
Need help with your workers' compensation insurance?
Our licensed agents can help you understand your coverage options and find the right policy for your business.