Workers' Compensation and Employers' Liability
Longshore and Harbor Workers' Compensation Act
Wrap-up Construction
Other States
Tail Coverage

Workers' Compensation and Employers' Liability

Both of these coverages are included in Beacon Mutual policy. Workers' compensation is "part one" of the policy and pays the statutory benefits specified by the workers' compensation law. (The law is different in each state.) "Part two" is employers' liability coverage. It covers tort liability as opposed to specific benefits provided under "part one." It indicates not only circumstances for which coverage will be afforded and a defense provided, but also situations from which coverage will be excluded. Employers' liability coverage carries the specific limits of liability applicable to each person and each accident and an aggregate policy limit for occupational disease claims.

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Longshore and Harbor Workers' Compensation Act

This policy provides coverage as required by federal law. It applies to injuries that occur on navigable U.S. waters and on dry docks. Additionally, it relates to work on any adjoining pier, wharf, terminal, building way, maritime railway or other adjoining area customarily used by an employee in loading, unloading, repairing or building a vessel.

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Wrap-up Construction

In a wrap-up construction policy, a single job is covered and the owner, general contractor, subcontractors and sub-sub contractors are insured together by one insurance carrier. It is sometimes referred to as a "Directed Insurance Plan," meaning the owner and general contractor contractually control the placement of insurance with a single insurance carrier. The advantages include various cost reductions to the owner and better control of the project, including safety aspects.

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Other States

Although Beacon is licensed to write workers' compensation insurance only in the state of Rhode Island, Beacon also provides Rhode Island benefits to Rhode Island employees who are temporarily in other states. Beacon also has an arrangement with Argonaut Insurance Company to provide insurance for permanent locations and exposures in other states if the client has a Rhode Island location.

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Tail Coverage

We offer to self-insured employers who wish to move to traditional workers' compensation insurance a "tail coverage" endorsement that provides coverage for known and unknown liabilities related to the period they were self-insured in Rhode Island.

The fixed premium is paid only once and is based on an analysis of potential exposures and anticipated developments. Once the tail coverage is written, securities that had been required by the Department of Labor when the company was self-insured are generally returned to the employer.

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