Three Things Workers' Compensation Insurance Won't Cover
If you own a business that has employees, chances are you are required by law to carry workers' compensation insurance. This insurance is your protection that if a worker is hurt on the job, your business won't be destroyed by the resulting medical bills and rehabilitation expense. There are some things that Workers' Compensation insurance won't cover. Here is a look at things not to expect compensation for when an accident happens.
Workers' Compensation Insurance Won't Cover A Replacement Employee
A severe injury could keep one of your top employees out of work for a lengthy period of time, maybe even permanently. Most likely, you will need to at least temporarily fill the position. It costs money and time to find and train a new employee, and reimbursing you for your efforts and expense is outside of the scope of Workers' Compensation insurance coverage.
Workers' Compensation Insurance Won't Cover Funds To Replace Equipment Or Vehicles
As a small business owner, it is your responsibility to have an emergency contingency fund for unexpected expenses. If your employer was in a work-related car accident or became injured on the job and a piece of your machinery was put out of service as a result of the mishap, you will need to come up with the replacement or repair funds from other sources.
Workers' Compensation also won't cover upgrades and improvements to make your working environment safer or bring it up to OSHA's (Occupational Safety and Health Administration) standards and codes. The SBA (U.S. Small Business Administration) can provide information on a loan program that might be right for you if you need funding to enable you to provide a safer work environment for your employees.
Workers' Compensation Insurance Won't Cover Non-Employee Collateral Damage Or Injury
In the unfortunate event an innocent bystander is also injured in the accident, you will need to rely on other insurance to cover any costs associated with their care. For example, if your employee was moving a heavy load on a forklift and lost control of the palette stack and both the employee and a nearby customer were injured, the customer's claims against you would need to be covered under your general liability insurance. If another driver was injured or their vehicle damaged in an accident your employee was involved in, you auto insurance would provide the coverage.
It's a good idea to annually meet with your Workers' Compensation agent as well as other insurance companies you may deal with to ensure your coverage is adequate before an accident happens.
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