What does Part One of a Workers' Compensation insurance policy cover?

Part One of a Workers' Compensation insurance policy specifically addresses an employer's statutory liabilities under Workers' Compensation laws. This section provides coverage for medical expenses, wage loss, and rehabilitation costs associated with work-related injuries or illnesses suffered by employees. It is designed to fulfill the employer's legal obligation to provide a safe work environment and compensatory benefits to injured workers, as required by state Workers' Compensation statutes.

In contrast, the other options pertain to different types of liabilities that fall outside the scope of a typical Workers' Compensation policy. For example, employer liabilities under health insurance laws relate to health coverage rather than workers' compensation benefits, and liabilities for employee theft involve unrelated insurance coverage concerning loss due to dishonesty. Lastly, while employers do have certain liabilities under federal laws, these are not covered by Part One of a Workers' Compensation policy, which specifically focuses on state-mandated compensation for workplace injuries.