Workers’ compensation consists of three parts: Part A, which satisfies state insurance requirements, Part B, which covers additional costs related to a workplace injury, and Part C, which allows the policy benefits to comply with specific requirements set in regards to “statutory benefits” set by the state. (This third part is more complicated and differs from state to state).
Part B is of special importance because it is meant to fund medical bills, related expenses, and lost wages in the case of a covered workers’ compensation loss. Under Part B, workers who are injured on the job can be compensated for 100% of all medical expenses, 66.66% of lost wages, a lump sum for disability and disfigurement, and a death benefit. Most states require this coverage if a company has more than three employees, including the owners of uninsured subcontractors and their employees for one year.
How is Part B Enabled?
Part B is typically activated after a significant workplace injury that’s deemed the fault of the employer. An employee could notice a significant workplace hazard, report it and if the employer never resolved the matter or fixed the issue, then an employee was injured then the Part B insurance would kick in to cover potential new compensatory damages. Typically, a lawsuit is filed by the injured party to activate this coverage.
Alabama Workers’ Compensation Options
Alabama has four ways for workers’ compensation liability to be covered:
- Commercial coverage (voluntary market)
- Commercial coverage (assigned risk pool)
- A group self-insurance fund
- Individually self-insure (if qualifications are met)
If you find that your employer is not carrying the appropriate workers’ compensation coverage relative to the amount of risk associated with your job, you may want to report the employer to the Alabama Department of Labor.
Additionally, if you’ve been significantly injured in a workplace incident and the employer is likely at fault for your injuries, you may have additional opportunities open to you to explore a suit to activate the Part B coverage. A qualified workers’ compensation law firm like Bevill & Bevill, LLC can help you understand your rights and which course of action may be best. Call (205) 221-4646 today to schedule a free consultation.