If your small business is self-insured under a workers’ compensation plan, you already took the first step in employee and business protection. Unfortunately, workers’ compensation plans do have limits. For example, could your business or insurance coverage handle a claim upward of $250,000?
If you worry about financial hardship due to workers’ compensation claims, you need to think about excess workers’ compensation coverage.
Understanding Excess Coverage
Workers’ compensation coverage has a designated dollar limit. If claims surpass that limit, you may have to pay out of pocket. Excess coverage will cover claims that do surpass the limit. One of the benefits of being self-insured is being able to control the cost of workers’ compensation. Unfortunately, that means you may not have high enough coverage for all injuries.
Benefits of Excess Coverage
When you choose an excess coverage policy, you have more flexibility and control over the costs. Some industries have more challenging risks than others. Sometimes, you require creative solutions when thinking about risk management. A lot of workers’ compensation policies don’t consider the injury risks to specific industries.
You shouldn’t have to worry about your employee’s injuries devastating your small business financially. There should be enough coverage that he or she can take care of the injury and you don’t go broke in the process.