Part B of the workers’ compensation insurance carries set limits on employee benefits. Companies in which employees engage in dangerous activities, such as high-rise construction or operating heavy machinery, may purchase Part B insurance for incidents not covered in Part A. The benefits in Part B can include 100 percent coverage on medical costs, two-thirds compensation on lost wages and lump sum payments for dismemberment, disability or death benefits.
Each state has different requirements that cover the benefits, regulations and premium costs for workers’ compensation insurance coverage. Small businesses in which the owners are also the only employees, such as sole proprietorships or partnerships, are not required to carry workers’ compensation insurance, as these employees are often covered by their own personal policies. Businesses in which the employees do not have an ownership stake must purchase workers’ compensation insurance to protect them from claims stemming from employees injured at work.