According to a report released by the Bureau of Labor Statistics, in 2011, more than three million employees suffered injury or illness in the workplace. The most common injuries included vehicle accidents, trips and falls, and other accidents that can happen in almost any workplace.
This data underscores the importance of having comprehensive workers compensation coverage. But what if you are worried that standard coverage will not be enough in the case of a major accident in your workplace? If this is one of your concerns as a business owner, then you may want to consider investing in excess workers compensation coverage.
What is excess coverage?
Excess workers compensation coverage is an additional insurance policy that does not start paying out until all primary policies are exhausted. With an annual 3.5 workers compensation cases per 100 full-time workers, even small or medium-sized companies might be called upon to cover multiple workers’ claims at a time. If this happens to your business, it can quickly exhaust your workers compensation coverage and lead to having to pay hefty medical bills out of pocket.
Additional benefits of excess coverage
An excess coverage policy is generally much less expensive than a standard one. It can be included as a rider on your existing coverage to save the time and trouble of underwriting a new policy. With all these benefits, excess workers compensation coverage is worth considering to provide peace of mind and security for your business.
Owning a business and providing people with employment comes with certain responsibilities. Federal and state law regulate many things that employers can and cannot do, and others dictate actions that employers are required to take in order to retain a business license. One such requirement for many companies is workers compensation in NY. Because your business is likely required to offer it, it’s important to know what a typical policy covers.
What Workers Compensation Covers
Typically, a workers compensation policy covers medical expenses and wage replacement for employees who are injured on the job. It also covers expenses associated with illness or injuries that are job-related, which means that even though the problem may not occur or surface in the workplace, it can still be covered as long as it is directly related to the job.
What Workers Compensation Doesn’t Cover
There are several cases in which workers compensation will not supplement medical expenses or give injured workers replacement wages. Cases that fall under this category may include:
- injuries resulting from drug or alcohol use
- injuries that employees purposely commit against themselves
- injuries resulting from an altercation initiated by the injured worker
- injuries resulting from disregarding work place policy
Because workers compensation in NY is governed by state rather than federal regulation, coverage may vary according to where you are located. Talk with a professional insurance agent in your area to find out more about coverage available to you.
Insurance agencies are in the business of protecting their clients’ interests and providing those clients with exceptional service. The lines of coverage that these agencies make available to each one of their clients are going to enable those clients to do more and do it better. An agent that understands the needs of a business can improve the strength of a business by providing excess workers compensation policies.
The Risk of Doing Business
Every business is concerned with risk management, regardless of what industry they’re in. Certain industries have relatively little risk associated with them while others are judged to be more risky. For instance, a corporate office has few risks when compared to a welding studio or a metal fabrication plant. While businesses are typically required to carry a minimum of workers compensation, the needs of certain organizations call for the purchase of additional coverage.
What Does This Coverage Do?
A general workers compensation policy will provide an employee injured on the job with financial compensation; this compensation covers the cost of medical treatment and other related expenses. Because certain businesses have a higher degree of risk, the expense of compensation can be considerably greater. This is where an excess workers compensation policy can come in handy.
All businesses want to protect their employees; after all, doing this is in their best interest as an employer. An insurance company can be one of the biggest allies a business has thanks to the policies they make available.