Workers’ compensation insurance is a must-have for any business owner. It protects your employees in case of an accident on the job, and you from liability should something happen to them while they are working. But what happens if one of your employees is hurt, and your workers’ comp policy does not cover them?
If this happens, you could be liable for damages—and that’s why excess workers compensation insurance is so important to consider when buying your policy.
Determine Your Exact Needs
which best home insurance company The first step when buying excess workers compensation insurance is determining what type of coverage you need. You might think that all business owners should have the same type of coverage, but this isn’t necessarily true. Consider the following factors when determining your needs:
- The number of employees you have on staff;
- How many employees are working at any given time;
- How much money is at risk if an employee gets injured or sick while working for you; and
- What types of injuries might occur in your industry or workplace?
Choose an Excess Insurance Company That Is Well Regulated
The other thing to look for when choosing an excess workers’ compensation insurance company is whether or not it’s well-regulated. There are several ways that you can check this.
Check with your state’s Department of Insurance to see if they regulate the company. You can also check with the National Association of Insurance Commissioners (NAIC). This organization has a search tool that allows you to see which states each insurance company is licensed in and its financial rating, which tells you how well off the company is.
Contact your local Department of Insurance office if you have any questions about your state’s regulations on worker’s comp insurance companies. They will be able to tell you what kinds of licenses are required and what qualifications must be met for an insurance company to operate in your state.
Compare Multiple Quotes
It’s important to compare multiple quotes forexcess workers’ compensation insurance. Comparing prices from different carriers can help you find the best policy at a fair price.
To get the most accurate results, you should compare quotes from a minimum of three different carriers. You can get quotes online or by calling directly to an insurer.
When comparing quotes, be sure to include all factors that could affect your premiums, such as:
- The type of business you operate (e.g., manufacturing plant or retail store).
- The number of claims filed against your company in the past three years (if any).
- Whether or not you have any employees who are classified as “high risk” due to their age (e.g., 65+) or medical conditions (e.g., diabetes).
- Whether or not your employees work on-site or at home and how often they travel away from home on business trips
Workers’ compensation insurance has become increasingly crucial for business owners over the years, and for a good reason. Although it can seem like an unnecessary expense, it can come back to benefit you in the long run, saving you from some costly legal issues down the road. If you want to be sure that you know where your risks are, keep these three tips in mind next time you’re buying excess workers compensation insurance.