Employer's Liability insurance is a legal requirement in many states. Most business owners understand the importance of worker's compensation insurance to safeguard them against potentially frivolous claims from employees they employ. But, even with the necessary worker's comp insurance, employers have found that workers compensation does not cover all of the expenses they incur. In fact, some insurance companies require employers to purchase additional policies.
The types of policies provided by most insurance companies, including those offering employers' liability insurance, generally include coverage for accidents resulting from negligence on the part of the employer or company. These policies typically also include coverage for illness or death on the job and are required by law. While these are important protections, the primary reason that employers need to purchase workers' compensation insurance is to cover the costs associated with medical care costs for employees.
Employers liability insurance usually pays medical costs for employees who are injured or fall ill on the job. It covers costs related to the rehabilitation of those injured, which can be costly and are usually covered by worker's compensation coverage. Many employers do not provide this type of insurance because they assume that their employees will never need it. This is especially true of small businesses that are often family owned, as family members frequently take care of household chores.
Other insurance policies cover more specific types of claims. For example, workers' compensation is not required to cover dental costs. Although dental coverage may not seem important, it is important to take care of an accident that has resulted in a tooth or a missing tooth. For example, if you lose a tooth on the job, you will likely have to pay the cost of a dentist's bill. This is not covered by worker's compensation.
If your company doesn't offer workers' compensation, another option is to purchase additional workers' compensation insurance. One common type of insurance is workers' personal property liability insurance. This type of coverage covers costs incurred due to theft or damage to personal property of employees. However, it's important to check with your insurance agent about which specific types of coverage your company is required to purchase, including whether the policy includes medical expenses.
Employers' liability insurance, like worker's compensation, is an essential part of most business owners' financial protection plan. . . . . . . However, it is not sufficient in every case.