Most business owners know how important workers' compensation insurance is when it comes to protecting themselves from employee injury or damage claims. Unfortunately, workers' comp doesn't cover everything. In fact, the exceptions have prompted businesses and insurance companies to develop a companion product called employers liability insurance. And our independent insurance agents know all about it.
They’ll help connect you with multiple carriers and quotes to find the best coverage to help protect your employees, and you. And in the end, you’ll have a comprehensive business insurance plan that limits your business's exposures to nasty lawsuits. But first, let’s talk about the coverage, and the non-coverage, you can expect from your employers liability insurance.
You’ve probably heard of auto gap insurance -- a separate policy to cover the difference between what car insurance covers and what is still owed on the loan for a vehicle. Employers liability insurance is purchased with the same thought in mind: to protect your business from costs resulting from employee claims that are not covered by workers' compensation benefits. It covers the gap between your company's bottom line and lawsuits stemming from employee activities. Some insurance companies and state regulations even refer to employers liability insurance as "stopgap coverage."
Your state, or the county in which you do business, may even require you to carry employers liability insurance. Which is why it's important to work with an experienced insurance agent who is familiar with your industry, the area in which you do business, and any laws with which you must comply.
You may already have a professional liability policy, an EPLI policy (employment practices liability insurance), a general liability policy, and perhaps a host of other coverages to protect your business from liability risk exposures. Do you really need another liability insurance policy? Yes. Not one of these products fills the gap between workers' compensation and your revenues and assets, but employers liability insurance does.
Unfortunately, many businesses owners are under the misconception that any employee injury on the job is covered by their workers' compensation benefits. In reality, there are several exceptions that aren’t. However, they are covered by employers liability, like:
Employers liability insurance provides an added layer of protection for your business.
Many policies have limits on what they will pay out on these claims. You can choose higher limits and pay slightly higher premiums, but rates are usually fairly cheap for an additional $1 million in coverage. Or, to increase your limits, you may want to think about a commercial umbrella policy, which works above the employers liability coverage. Your agent can help steer you toward the right choice for you.
As great as employers liability coverage is, it still doesn’t cover everything. It also contains exceptions, like:
You can easily avoid these risks by not breaking the law, carrying workers' compensation coverage, and working with an independent insurance agent to ensure that all of your liability policies have adequate limits and appropriate coverage options.
Depending on where you do business, you may be able to purchase coverage as part of your workers' compensation benefits. The premiums are tied together, so you don't have to worry about making separate payments. In some states, however, you may have to purchase a separate policy, especially if you’re conducting business overseas.
If you have workers' compensation coverage, you may already have employers liability coverage. The two work together to protect you and your employees. However, you should make sure that:
Our agents will review your needs and help you evaluate which employers liability insurance policy makes the most sense. They'll also compare policies and quotes from multiple insurance companies to make sure you have the best protection out there. They'll hook you up — in a comprehensive and affordable way.
Independent insurance agents have experience in dealing with all kinds of businesses and insurance policies. They excel at matching the most appropriate policy to the business in need. Shopping around for insurance policies can be tricky, confusing, and time-consuming, and an independent insurance agent's role is to simplify the process.
They’re also there to help make sure you get the absolute best deal, and the one that meets your unique needs. They shop and compare insurance quotes for you, and they'll break down all the jargon so that you understand exactly what you're getting.