Workers’ compensation is vital in protecting your business and its assets. Some form of this specialized policy is mandatory in the United States, though each state has different requirements for the amount of coverage you must have. Unfortunately, there are times when a standard plan will fall short of your actual needs. In such scenarios, additional policies like excess workers comp offer a solution.
Taking a Closer Look at Policy Details
An excess policy covers all potential losses related to workers’ comp up to a certain amount. The policyholder can select a specific value or pick a plan with an unlimited amount. By opting for a predetermined coverage cap, you can minimize the severity of your company’s losses. Factors that can influence the effectiveness of your policy include:
- Size of company and number of employees
- Risks associated with your industry
- Steps taken to reduce claims
Reviewing the Benefits of Excess Workers Comp
Several key advantages come with excess policies. If you work in a niche industry, this coverage option grants more control when meeting unique workplace hazards. An excess plan also makes it easier to prepare for worst-case scenarios, meet the regulatory requirements of your industry, and manage compensation claims.
While traditional workers’ compensation coverage is typically enough to cover a company’s risks, this will not always be the case. Review the details of excess policies to minimize losses and find peace of mind.