New business owners usually think that their general liability insurance coverage includes workers’ compensation. However, general liability insurance won’t have coverage for employee injuries at work. You can fix this by understanding that general liability insurance covers third-party injuries as well as claims against operations, products, or services. You will have to buy a separate workers’ compensation insurance policy if you want coverage for your employees’ injuries.
Thinking That Workers’ Compensation Limits Are Simple
Small business owners often assume that coverage limits for workers’ compensation are as easy as other small business policies. However, workers’ compensation limits shouldn’t replace the employer’s responsibility in maintaining safety in the workplace. Part A, or Employee benefits, provides coverage for medical and rehabilitation expenses as well as lost wages of the injured employee. However, the employer's liability is coverage for the employer's legal defense as well as money awarded to the employee.
Believing That You Can Have an Additional Insured on Your Workers’ Comp Policy
Your workers’ compensation policy won’t allow you to put “additional insured” status on it. You also can’t have another company use your workers’ compensation insurance policy for their employees. Thus, you need to determine if your company really needs workers’ compensation or not. You should also know how your state deals with contractors as well as subcontractors.
Thinking That Workers’ Comp Requirements for All States Are the Same
You can't assume that every state has the same requirements for workers' compensation insurance. You should see to it that your business should comply with the state where your workers work. Your workers' compensation insurance doesn't necessarily depend on where your business is based. Always modify your workers' comp policy if you have business operations in multiple states.
Waiting Till It’s Too Late
Workers' compensation insurance policy operates just like any ordinary insurance policy. You can't apply for coverage anymore if one of your employees has already made a claim. Thus, never wait till the last moment. Get workers' comp insurance, and don't wait for it to lapse.
Some Final Words
Always check the requirements of your state, especially where you operate and where your workers are. Also, calculate your payroll to estimate coverage. Find a reliable workers' compensation insurance agent as early as now.
At Independent Executive Insurance Broker, we aim to provide comprehensive insurance policies that make your life easier. We want to help you get the insurance that fits your needs. You can get more information about our products and services by calling our agency at (805) 624-4815. Get your free quote today by CLICKING HERE.