If a workers' compensation policy lapses and an employee is injured after mailing the check but before reinstatement, which statement is true?

If a workers' compensation policy lapses and an employee is injured after mailing the check but before reinstatement, which statement is true?

• A. You are covered because the policy lapsed
• B. You are not covered because the policy lapsed
• C. You are covered retroactively
• D. You must obtain a new policy before returning to work

Answer: (B)

Coverage under a workers’ compensation policy exists only while the policy is in force. If the policy lapses, there is no coverage for injuries that occur during the lapse period. Paying the premium after a lapse does not retroactively reinstate coverage; reinstatement typically takes effect only after processing and does not automatically cover past injuries. So, if an employee is injured after the lapse and before the policy is reinstated, the claim is not covered by workers’ compensation. That’s why the correct conclusion is that you are not covered because the policy lapsed.

Coverage under a workers’ compensation policy exists only while the policy is in force. If the policy lapses, there is no coverage for injuries that occur during the lapse period. Paying the premium after a lapse does not retroactively reinstate coverage; reinstatement typically takes effect only after processing and does not automatically cover past injuries. So, if an employee is injured after the lapse and before the policy is reinstated, the claim is not covered by workers’ compensation. That’s why the correct conclusion is that you are not covered because the policy lapsed.