Addressing Employee Accident Claims

workmans comp insurance

Employees are legally entitled to a reasonable expectation for safety and protection within the working environment. This cannot always be guaranteed, and accidents happen. In these situations, workmans comp insurance is a tremendous asset for business owners.

Coverage Options

Most coverage policies have two sections. One part addresses injury and restitution to employees, while the other portion addresses employer liabilities in the event of a lawsuit.

There is usually no cap on the coverage amount of these insurance policies, in that the insurance company assumes total monetary coverage of the employer’s statutory obligation to the employee. There is, however, a monetary limit associated with coverage payout when a lawsuit is present.

Premium Costs

The cost to carry workmans comp insurance will vary according to the employer’s industry and overall payroll. Fields carrying more risks, such as logging, will carry higher premiums. Premiums are established after considering:

  • Risk or danger associated with industry
  • Number of employees
  • Experience rating
  • Business location

Insurance Providers

This coverage is not included in a Business owner Policy and must be purchased separately. Many states have legislation governing where companies can purchase policies. There are a few states where the state is a monopoly insurer, mandating purchase from a state fund. Other states allow for private insurance purchases.

Being prepared in the event of an employee accident minimizes risk and loss that can financially cripple a business. Offering workmans comp insurance is one way to be prepared.