As an employer, you probably have a workers' compensation insurance policy for your employees to protect you from any work-related injuries or illnesses, but what about negligence? Does your workers' compensation policy provide coverage if you're found to be at fault for that employee's injury or illness?
Your best resource for answers to questions like these is an independent insurance agent. Your agent has the knowledge and experience to back up their answers and can advise in all things workers' compensation insurance. But first, here's a bit of background to help you understand the ins and outs of workers' comp insurance.
Employers' Liability Exclusion and Workers' Compensation
First off, you need to know what employers' liability insurance is before you can know what an employers' liability exclusion is.
Employers' liability insurance: An employers' liability policy is used when an employee files a workers' compensation claim due to a work-related injury or illness to pay for medical expenses and partial wages. This employee files a lawsuit against you as the employer for additional damages claiming they got injured or ill as a result of your negligence or problematic working conditions. If the employee sues, your employer’s liability policy will pay for legal expenses, like:
Employers' liability exclusion: An employers' liability exclusion, as it pertains to a workers' compensation policy, is just like it sounds. It's an exclusion that the insurance carrier puts in your workers' compensation policy stating they will not pay for the above items that a separate employers' liability policy should pay for.
It always pays to read the fine print. Most insurance companies are not going to make themselves responsible for coverage that another policy can provide. An independent insurance agent can make sure you have all the coverages you need.
Why It's Important to Have an Employers' Liability Policy
No business is entirely safe from accidents or illnesses. As a business owner, there are a million details you're responsible for, and if you're not careful, you may overlook a few important safety measures.
You're rockin' and growin' your business and sometimes in the hustle and bustle, you get busy. It just takes one misstep and your employee could trip over that cord you've been meaning to move several times but just never got around to it. What's worse is if you were reminded to move it by your employees and then someone got hurt before you took action.
Those mistakes can be construed as negligence on your part and now you find yourself getting sued on top of filing a workers' compensation claim for the injured employee. If you took the time to discuss options with your independent insurance agent and purchased an employers' liability policy you'd be all set. If not, well it's too late for this claim and all you can do is have the proper coverage moving forward.
What's the Cost of an Employers' Liability Policy?
The real question is: What's an employers' liability exclusion going to cost you if you don't' have an employers' liability policy in place? The amount you could owe in legal fees just defending yourself — even if the claim is found in your favor — could be astronomical.
An employers' liability policy is a small price to pay for proper coverage that will save you a lot of hassle in the long run. The best way to find your exact pricing is through your independent insurance agent. They have several options to suit your needs and fit your budget.
Benefits of an Independent Insurance Agent
The benefits of an independent insurance agent are hundreds of thousands of dollars. A good agent could save your business from financial ruin by advising on the proper coverage to make sure that doesn't happen. With multiple insurance companies to work with, they are sure to find you the best coverage for a competitive price. So go on, get covered.