Even though you may do your best to source the most comprehensive insurance plan for your needs, there is the potential for exclusions and limitations that can interfere with claim processing. When it comes to a business and the provision of a workers’ comp policy, there are certain exceptions to the rule if your business operates in one of the following:
- North Dakota
In these states, fully protecting your company from an injury lawsuit means acquiring stop gap liability insurance.
Why Is It Necessary?
As the facts on https://www.wwspi.com/ reveal, stop-gap coverage or a stop-gap endorsement can help an employer fill in potential gaps or exclusion areas in a workers’ compensation policy. Employer liability concerns are usually taken care of through the design of the workers’ comp coverage plan, but in the four above mentioned states, this is not the case. The state regulates workers’ comp purchases through the state fund, and not all employer liabilities are covered in the plans.
Why Does It Do?
The supplemental coverage is protection from allegations that the employer did not provide a safe working environment. Employer liability is a separate clause in a typical workers’ comp policy and it keeps an employer from being held liable for injury or illness. However, the state-mandated coverage option does not contain such a clause. Therefore, an employer should consider purchasing the stop gap coverage in order to prevent an employee from holding the company liable should an incident occur.
Accidents can happen anywhere, even on the job, especially if you work in a high-risk business in an industry where physical labor and machinery are part of your regular duties. Recovering from an injury is stressful enough that you shouldn’t have to worry about how you’ll pay for medical costs. With worker’s compensation insurance in Virginia, you have the protection you need so you can focus on your health.
Even minor injuries can incur heavy medical costs, especially if multiple procedures are needed to address the problem. But if you have worker’s comp, you won’t have to worry about paying heavy bills. In fact, if the incident that caused your injury occurred while you were at work doing your job, this coverage will take care of all your payments.
Sometimes recovery will cause you to miss a large chunk of work time. While there are ways you can be excused from your job, eventually, you might have no more vacation or sick leave left. Fortunately, with worker’s compensation in Virginia you can retain 66.7 of your paycheck even while off the job waiting to be fit to return.
Health and medical challenges can be stressful enough, but financial concerns can compound this anxiety. Thanks to worker’s comp, you have at least one worry taken care of.
As a small business owner, you want to keep your employees safe on the job, but you cannot always prevent injuries. Workers compensation in Virginia is required for almost all companies and can vary quite a bit in cost. If you want to provide adequate coverage for your workers but still be able to manage expenses, consider these three factors that may affect your premium rates.
1. What is the Nature of Your Business?
Your industry may be the single biggest issue that determines your premiums. If you are in a dangerous or high-risk line of work, expect your premiums to be significantly more than someone who provides clerical or other administrative work that requires little to no physical activity.
2. How Many Past Claims Have You Had?
The safety record history of your business can directly impact the amount of your workers compensation in Virginia. If you have had few insurance claims filed, you can expect lower premiums than a company that has a higher number of work-related injuries.
3. Why Does Payroll Matter?
The other two factors speak more to the safety of your line of work, but your payroll also can influence premium amounts because it is part of the formula for calculating rates. A lower payroll amount may translate to lower premiums because you may have fewer employees to cover.
While you cannot change all of these factors, you can create a work environment that stresses safety in order to control rate increases for workers compensation in Virginia and keep your employees injury-free.