By now most business owners have received their annual renewal for 2016 -2017 coverage.
I decided to provide a summary of what Workers Compensation coverage details.
The workplace is an extremely common setting for a person to be injured. The Workers Compensation and Employers Liability Insurance Policy are used to provide insurance coverage for a company’s statutory liability (coverage responsibility) under a Workers Compensation Act. It usually involves paying for medical treatment and disability. It also handles lawsuits from injured workers that fall outside of the Act.
A workers compensation policy responds to accidental injury that occurs during work with mandatory benefits. However, besides taking place at work, an injury must also be related to the injured person’s duties. Further, the policy also covers costs associated with disease or death that may be the ultimate result of the accident. If the employee’s injury does not qualify for compensation under the Workers Compensation Acts (or Occupational Disease Acts, if separate) the policy will respond to an employee who sues his or her employer, alleging negligence.
The type of business that can be insured with a workers comp policy may be an individual, partnership, joint venture, corporation, association, fiduciary, or other entity. A typical policy lists the work locations that are covered. The policy is designed to handle work-related accidents as well as diseases. The amounts that must be paid are defined by the state or jurisdiction where a covered incident occurs. The policy usually lists the other types of costs and expenses that are eligible for payment under the policy.
In other respects, a workers compensation policy is similar to other kinds of insurance. The policy benefits include being provided a legal defense against certain types of lawsuits. The policy explains that, when other sources of loss payment are available, the policy will begin any payment once the other source has paid its obligation. However, the policy will not pay for any amounts that exceed stated benefit amounts. The insurance coverage may be expanded, restricted, or made to comply with specific state requirements through the use of endorsements.
Generally the insurer that provides coverage acquires the covered company’s legal right to pursue payment from a party that may have been responsible for a workplace injury.
I am also sure that some business owner have completed their audits and been assessed additional premiums for additional wages that were paid during the policy. Check with your agent or reach out to us to find out more about Pay As you Go Workers Comp. Not only can you start with little or no downpayment, it ensures the accuracy of payroll reporting.
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