Workers’ Compensation and Employers Liability

Workers’ Compensation Insurance provides statutory protection against bodily injury, sickness or disease sustained
by employees of the other party in the scope of their employment. It should be required
of any other party performing work for the Agency. Employers’ liability coverage is
usually included in workers’ compensation policies. It insures common law claims of
injured employees made in lieu of or in addition to a workers’ compensation claim.


The workers’ compensation policy should provide a waiver of subrogation in favor of
the State. Waiver of subrogation means the relinquishment of a right to seek reimbursement
for a loss from the responsible party. For example, agencies often require that a
waiver of subrogation be added to a contractor’s workers’ compensation policy, to
prevent the insurer from paying the claim of an injured employee, then seeking reimbursement
from the Agency if a defect in the Agency’s premises caused the injury.