If you are reading this thread in this forum you are obviously focused on one of the most complex areas of working in the United States - liability and workers comp. There are more than a few differences between these two types of insurance, but they go far beyond the simple definition of each. In this article I will attempt to define both of these terms and discuss some important differences between them. Hopefully this will give you a better idea of how you can choose the right option for your business.
Workers compensation insurance covers your employees for "work related" injuries. This means that they are protected against any claims of wages lost, pain and suffering, temporary disability or permanent disability arising from an accident at work. This type of insurance also covers any mental and psychological injuries incurred by your employees as a result of the workplace accidents. Workers compensation insurance free quotes are available from a large number of companies in every industry and state.
Liability insurance, on the other hand is designed to protect you in the event that you are responsible for someone else's pain and suffering after an accident. This means that if you are found at fault for an employee's injuries, then you are fully responsible for their treatment and future. If you have liability insurance, then your insurance company will pay the employee's medical bills for the time they spend recovering and you will not be responsible for their wages or loss of income. Your insurance premium will be calculated based on the current insured state and the potential financial loss incurred from the events described above. Each year companies offer highly competitive rates for this type of coverage. If you currently do not have this type of coverage, you should strongly consider getting it.
Once you have decided to purchase this coverage, your next step is going through the quote process. In order to get the best price for your policy, you must have a thorough understanding of your state's insurance premiums and what your state sets as the maximum amount of the fine that you are personally liable for. In order to do this you will need to contact your state insurance department and make sure that they have a minimum amount of liability insurance premiums as set by the state. Once you know the amount of coverage that you will need, you can go online and fill out a premium rate quote request.
After you receive the quote you can then determine which option is best for you. The first part of your quote will clearly outline your liability insurance requirements. You will need to know whether you are personally liable for the full amount of the workers' comp award or if the employer is responsible for that. The second part of the quote process will look at the potential financial impact if you were to get sued for an injury sustained while on the job.
If you have already purchased liability and workers' comp coverage, then your next step is to decide whether you want to purchase additional coverage for your employers. If you work for a company that is large enough to have several subcontractors, then purchasing additional insurance with them may be the best way to make sure that you have the right amount of coverage in case someone gets injured. Often, when a person is injured on the job site, their benefits from the company that they are employed with are distributed to all of the subcontractors. This means that if one of the subcontractors isn't covered, then the claim will need to go to the main insurance company. By having a secondary insurance policy in place, you can ensure that if this happens you are covered. However, most people choose to simply purchase the primary policy so that they know that they are properly covered.
Workers compensation insurance covers your employees for "work related" injuries. This means that they are protected against any claims of wages lost, pain and suffering, temporary disability or permanent disability arising from an accident at work. This type of insurance also covers any mental and psychological injuries incurred by your employees as a result of the workplace accidents. Workers compensation insurance free quotes are available from a large number of companies in every industry and state.
Liability insurance, on the other hand is designed to protect you in the event that you are responsible for someone else's pain and suffering after an accident. This means that if you are found at fault for an employee's injuries, then you are fully responsible for their treatment and future. If you have liability insurance, then your insurance company will pay the employee's medical bills for the time they spend recovering and you will not be responsible for their wages or loss of income. Your insurance premium will be calculated based on the current insured state and the potential financial loss incurred from the events described above. Each year companies offer highly competitive rates for this type of coverage. If you currently do not have this type of coverage, you should strongly consider getting it.
Once you have decided to purchase this coverage, your next step is going through the quote process. In order to get the best price for your policy, you must have a thorough understanding of your state's insurance premiums and what your state sets as the maximum amount of the fine that you are personally liable for. In order to do this you will need to contact your state insurance department and make sure that they have a minimum amount of liability insurance premiums as set by the state. Once you know the amount of coverage that you will need, you can go online and fill out a premium rate quote request.
After you receive the quote you can then determine which option is best for you. The first part of your quote will clearly outline your liability insurance requirements. You will need to know whether you are personally liable for the full amount of the workers' comp award or if the employer is responsible for that. The second part of the quote process will look at the potential financial impact if you were to get sued for an injury sustained while on the job.
If you have already purchased liability and workers' comp coverage, then your next step is to decide whether you want to purchase additional coverage for your employers. If you work for a company that is large enough to have several subcontractors, then purchasing additional insurance with them may be the best way to make sure that you have the right amount of coverage in case someone gets injured. Often, when a person is injured on the job site, their benefits from the company that they are employed with are distributed to all of the subcontractors. This means that if one of the subcontractors isn't covered, then the claim will need to go to the main insurance company. By having a secondary insurance policy in place, you can ensure that if this happens you are covered. However, most people choose to simply purchase the primary policy so that they know that they are properly covered.
