Workers’ compensation provides very broad coverage when you consider it will pay to rehabilitate an employee or even retrain them if they are injured and can no longer perform their job. There are five benefit areas where workers’ compensation coverage may apply:
- Medical Expenses
- Lost Wages
- Rehabilitation Costs
- Death Benefits
- Disability Benefits
In addition to these benefits every workers’ compensation plan will include employers’ liability coverage with limits ranging from $100,000/$500,000/$100,000 to $1,000,000/$1,000,000/$1,000,000. $100,000 per accident/$500,000 per policy/$100,000 per employee. While there are no limits in the part A workers’ compensation part of the policy, part B, employers’ liability will be subject to the limits you select. The difference between the two parts is workers’ compensation pays for the five areas of benefits and employers’ liability will protect the employer if they get sued for negligence or punitive damages. To minimize your exposure to an employers’ liability claim always have a safe work environment and follow all OSHA and industry safety protocols. You may be required to carry higher limits of employer liability based on certificate requirements of people you are doing work for.
Since employers’ liability is rarely used the cost to increase the limits from $100,000/$500,000/$100,000 to $1,000,000/$1,000,000/$1,000,000 is about 1.5 % of premium.
For more information about workers’ compensation insurance reach out to a knowledgeable Anderson Insurance Group agent today.