The reason for providing
workers compensation coverage is to account for any accidents that might take place in the workplace or address any illnesses that might result from the environment at the workplace. When such incidents take place, coverage plans serve to compensate the workers. This is a basic requirement of the worker which the employer is required to fulfill. It is, in fact, a state requirement that employers need to maintain a reliable and qualified compensation insurance policy for their workers. 

To most people's disbelief, this sort of insurance is not just beneficial for the employee. In fact, it is beneficial for the company as well because it provides the company with protection against any costs that might accrue due to work related injuries.

It is important to study your policy thoroughly because the worker’s compensation insurance documents are a unique insurance contract in many ways. For instance, when compared with the other insurance policies which offer liability coverage, this policy doesn’t have any maximum dollar value attached to it, in terms of primary coverage. 

Let’s consider the terms of your auto insurance policy which covers the maximum amount per accident, which is specified in the policy and means that in case the cost of an accident exceeds this limit, then you will have to either pay the extra amount out of your pocket or through an umbrella policy. 

There are two parts to a worker’s compensation insurance policy, part one of this policy deals with the workers compensation and this part has no limits attached to it. Whereas the second part of the policy deals with the liability of the employer and this part has a limit attached to it. Once this contract is agreed upon, it becomes binding on the insurance company to be responsible for of the claims of the employer which may arise after in terms of benefits covered in the worker’s compensation insurance policy.  

These aspects of the insurance policy make it very beneficial for the employer. The thing about worker’s compensation is that you can’t predict its cost. There can be no claims for several months and then you might suddenly be faced with a claim which makes up for all the months. This makes workers compensation unpredictable for businesses and it can prove to be destabilizing in many of the cases. However, in case of an insurance policy, the costs become more predictable and this allows the company to budget its costs for the term. 

The first part of the insurance policy dealing with workers compensation serves to shifts the liability, for legal worker’s compensation benefits which are due on the employer, to the company offering insurance. This has nothing to do with the size of the liability that might turn up and will have no affect the policy. In case the state decides to increase the level of benefits while the term of policy is underway, then the employer will not be affected by it as it will be the responsibility of the insurance company to account for the dues. 

The above information provides a brief insight in to the worker’s compensation insurance policy. Based on this, we encourage you to consider our services for California and Nevada coverage

 

 

References

http://www.entrepreneur.com/article/79594


Posted 3:22 PM

Share |


No Comments


Post a Comment
Name
Required
E-Mail
Required (Not Displayed)
Comment
Required


All comments are moderated and stripped of HTML.
Submission Validation
Required
CAPTCHA
Change the CAPTCHA codeSpeak the CAPTCHA code
 
Enter the Validation Code from above.
NOTICE: This blog and website are made available by the publisher for educational and informational purposes only. It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional in your state. By using this blog site you understand that there is no broker client relationship between you and the blog and website publisher.
Blog Archive


View Mobile Version

Connect with us

Social Social

Check us out

Kipper Insurance Agency of California, Nevada & Arizona
Carlsbad, CA 92009
Phone: 760-471-2200
Fax: 760-856-4071
License#: 0E67716

Fill out the form below to get started with an insurance quote