Part One of the Workers Compensation and Employers Liability Insurance Policy specifically addresses the obligations of the insured in relation to legal liabilities arising from workplace injuries. The insured is required to reimburse the insurer for penalties that may be assessed under workers' compensation laws due to situations arising from the employer's willful misconduct. This is an important provision as it holds the employer accountable for their actions that are in direct violation of safety regulations or standards, which could lead to increased liability.
This reimbursement is necessary because it ensures that if an employer's negligence or intentional disregard for safety regulations contributes to an injury, the additional costs incurred by the insurer due to penalties can be recouped. This provision helps maintain the integrity of the workers' compensation system and incentivizes employers to adhere to safety protocols and regulations.
In contrast, legal fees, medical expenses, and loss of income for injured workers are typically covered by the insurance policy itself, underscoring the distinction between reimbursable penalties and covered benefits that the insurer is obligated to provide under the terms of the policy.