If you run any business with employees, you need the right insurance coverage to protect you from injury claims they may lodge against you. In fact, you need more than one type of business insurance coverage. Here are three of the most important types of insurance coverage you need to protect you:
Workers Compensation Insurance
Workers compensation insurance pays for an employee's damages if the employee is injured while on the job. This means that an injured employee doesn't have to sue you for the damages. Another thing with workers compensation is that it doesn't depend on the determination of liability; what matters is that the employee was on the clock at the time of the injury. Of course, workers compensation insurance coverage is required for all businesses with employees. However, the coverage doesn't cover pain and suffering damages, and there are cases where the employee may still sue you outside of the workers compensation insurance system.
Employer Liability Insurance
Workers compensation insurance doesn't shield you from all possible lawsuits that you may face as a result of your employee getting injured at work. For example, workers compensation insurance will not help you if:
- An employee picks up a disease in the workplace, transmits it to a family member, and the family member sues you
- An employee gets injured at work and their spouse sues you for loss of consortium
- An employee is injured by a third party at your workplace, the employee sues the third party, and the third party responds by suing you
These claims can cost you considerable money to defend, even if you eventually win them. That is why you need employer liability insurance to help with your defense and pay the damages in case you lose the cases.
Employment Practices Liability
Employment practices liability coverage shields you from claims arising out of wrongful acts you may be accused of committing in the case of your business operations. The coverage is usually used to deal with wrongful termination claims, sexual harassment claims, invasion of privacy claims, and defamation claims, among others. For example, if an employee gets injured on the job, files for workers compensation and is fired soon after, they may sue you for retaliation or wrongful termination. In such a case, it is your employment practices liability coverage, assuming you have one, which will help you with the lawsuit.
Do you think your business is fully shielded from claims arising out of employee injuries? Talk to an insurance agent today to help you confirm whether this is the case.Share