A Worker's Compensation insurance policy covers an employer's liability to its employees under the Worker's Compensation Act for compensation and medical expense. Eligibility for temporary disability benefits are determined and must be documented by a doctor. Benefits for temporary wage loss due to disability are based on two-thirds of the employee's wage rate up to a specified maximum amount.
Permanent disability is awarded for the potential, or actual, loss of earning capacity.
The amount of benefit payment for permanent disability depends on the seriousness of the permanent disability. If a death occurs to an injured employee, death benefits and burial expense will be paid up to specific limits.