Extending Workers’ Comp Coverage

There are times when a company needs to extend its employee injury insurance past the workers’ comp coverage they carry. Most states allow for companies to carry private insurance coverage for mandated injury liability, but four do not. These include North Dakota, Ohio, Wyoming, and Washington. Within these states, companies are required to obtain coverage through state-funded programs, which leaves a gap in some additional areas of liability. The information found at https://www.wwspi.com states that stop-gap insurance addresses this exposure.

Areas of Liability

The exact nature of gap insurance is what other companies carry in the form of employer liability coverage. This covers the potential suits of

  • Third-party suits
  • Public tort claims
  • Intentional endangerment
  • Dual capacity claims
  • Injury or illness not covered by workers’ comp plans

Additionally, leased employees are excluded from the worker’s compensation plans. The endorsement of employer liability would be enacted in most states, but within the four mentioned above, stop-gap insurance becomes the defense.

The Cost of Coverage

Most insurance companies will determine the base price of stop-gap coverage according to your company’s payroll total. For normal liability policies in private insurers, it is often an endorsement set at a minimum amount. Check your current policy to see if employer liability is addressed, and if not, contact your broker for a quote on extending your coverage.

Tips for Improving Your Workers Comp Process

No matter how many precautions you might take with your business, accidents can happen. Knowing how to respond to these problems can make all the difference for your future. Above all else, you need to have a clear understanding of indemnity costs workers compensation and how you should be reacting immediately following an accident.

Fast Action

Prolonging a claim can create serious complications down the line. According to the professionals at https://www.nsins.com, the best way to get the most from your coverage is by reporting a claim as soon as an accident occurs. A failure to do this can cause a number of problems including:

Escalating costs
Increased odds of denial
Costly litigation
Protect Your Team

Outside of the financial costs to your company, these accidents also have a negative impact on your internal employees. An injury can lower morale and make other workers feel unsafe. Use this time to talk to your team and refresh everyone on your company’s safety standards. This is a great time to calm fears by providing helpful information about avoiding accidents in the future.
When you know what steps to take after a member of your team is injured in the workplace, it can make all the difference for your company. Take action right away and report the claim to see the best results from your compensation policy.