Most businesses in the U.S. are required to carry workers’ compensation coverage. While some businesses seek coverage through traditional means, either through a company or through the state, others choose to self-insure. When you self-insure, workers’ compensation is a major expense. Sometimes, workplace injuries may exceed your workers’ compensation limit. This is where excess workers compensation comes into play.
The Definition of Excess Workers’ Compensation
On average, your workers’ compensation coverage will pay for most injuries and lost wages for employees. However, do you know if your insurance coverage will cover catastrophic injuries? For example, if someone suffered from an injury with a piece of equipment and required over a month’s worth of wages and had serious medical bills as a result, will it max out your insurance policy? Excess workers’ compensation prepares your business for injuries that may exceed the limit.
Benefits of Excess Workers’ Compensation Coverage
There are a lot of benefits to excess workers’ compensation coverage. Using excess workers’ compensation coverage provides you with flexible coverages and reduces the expenses you would typically pay for traditional workers’ compensation coverage. If you are a smaller business with high risk exposure, excess coverage helps.
When it comes to protecting your business and your employees, you need workers’ compensation insurance. If you choose to self-insure, it’s more cost-effective and safe to invest in excess coverage.