What is Workers Compensation & Employers Liability Insurance?
Workers Compensation and Employers Liability Insurance are actually two separate insurance
coverages, but usually sold together. Before getting into the policy and what’s covered, a brief learning
lesson is important. Workers Compensation (WC) came about to help employers primarily. Before
workers compensation statutes (and the corresponding insurance policies to meet the requirements of
the statutes), injured employees could sue their employer and there was no good way for businesses to
plan for losses. The idea behind WC was to provide employees and employers with a sole recourse for
handling employees injuries. Now, by law, injured employees are entitled automatically to certain
benefits and because of that, those same employees give up their rights to sue their employer. Here are
the things that the typical state statute provides employees (all of which must be paid by the employer
and all of which are covered by WC):
- Medical treatment for any injury sustained (with no dollar or effectively no time limit)
- Lost wages for the time period that an injured employee can’t work because of their injury
- Lump sum settlements for life altering injuries and permanent, unrepairable body changes
However, that’s not the only concerns a business faces that need to be covered by a WC policy. While an
employee statutorily cannot sue an employer directly for their injury, lawsuits can still occur. Here are
several examples of suits that can still arise:
- an employee sues some negligent third party, who then sues his employer for contributory negligence
- loss of consortium, companionship, comfort, or affection for a relative of the injured employee
- cost of care or loss of services; or
- an on-the-job injury not work-related, but for which the employee holds you responsible.
These types of suits and others may be covered by an Employer’s Liability Insurance policy.
Why is Workers Compensation and Employers Liability Insurance Important?
There are a few reasons this coverage is important.
- First, employers in every state are responsible for injuries that employees sustain. The General
Liability policy that many businesses purchase specifically excludes injury to employees. This is
the only place where those injuries can be covered. - In most states, Workers Compensation is typically a required coverage by state statute. Every
state is different, and some states set a minimum number of employees hired, often dependent
on the type of work the employer does, but it is safe to assume that most states will require the
coverage. And, as stated in the first bullet, the employer is still responsible for providing the
benefits that a policy would provide; even if coverage is not mandated. - As a business, you are responsible for the injuries sustained by anyone who works for you. This
includes non-employees. Many businesses hire contractors to do work for them and often
contractors don’t have the right coverage for themselves or their employees. If sued by a
contractor, you’re going to need Workers Compensation and Employers Liability Insurance. - Finally, it is the right thing to do for your employees. If they’re injured, you want them getting
the help they need and don’t want to worry about the costs at that time.
- First, employers in every state are responsible for injuries that employees sustain. The General
How Our Team Can Help:
Our experienced team of insurance professionals is here to guide you in determining your needs and finding the appropriate solution. We do this in several ways:
- Tailored Solutions: We understand that every client/situation is unique. Our team will work
closely with you to customize an insurance plan that meets your specific needs and budget. - Risk Assessment: We will conduct a thorough risk assessment of your operations or ownership
interests to identify potential hazards and recommend appropriate coverage options. - Credit/Discount Help: There are various “discounts” or “credits” available to businesses that
purchase Workers Compensation. These are generally not automatic. We work with every
business to make sure they are receiving any and all credits that may be available. - Claims Assistance: In the event of a claim, our dedicated claims specialists will assist you
throughout the claims process, ensuring a smooth and hassle-free experience. - Expert Advice: With our in-depth knowledge of the insurance market, we can provide expert
advice and guidance to help you make informed decisions about your insurance coverage.
- Tailored Solutions: We understand that every client/situation is unique. Our team will work
Get Started Today!
Protect your business and employees with Workers Compensation and Employers Liability Insurance.
Contact our team today to learn more about our insurance solutions and how we can help safeguard
your ownership or business interests.