Work Compensation
FAQs
- What is Employers Liability coverage?
- What coverage benefits are provided for my employees?
- Are Design Professional Workers' Compensation Policies unique from other policies?
- Can coverage apply if we travel on business?
- Do we have to provide Workers’ Compensation coverage for our executive officers, partners, or members?
1- What is Employers Liability coverage?
Workers’ Compensation coverage includes compensation for lost wages, the cost for medical care, rehabilitation services, death benefits and legal services related to a workers' compensation or employer's liability claim. Insurance companies also provide loss control services, access to countrywide provider networks, nurse case managers, catastrophic injury care and vocational rehabilitation services.
These benefits are provided regardless of employer or employee negligence. A trade-off for that benefit is that under these laws, employees are precluded from suing their employers for injuries covered by workers compensation.
2- What coverage benefits are provided for my employees?
To recover benefits under your state's workers' compensation law, an employee does not have to prove that you were somehow responsible for their employment-related accident or disease. If they can prove you were liable for their accident or illness, they may be able to successfully sue your business to recover damages beyond the workers' compensation benefits. Employers Liability coverage can pay for the damages awarded to your injured employee as well as the legal expenses involved in such a suit. This coverage may also provide certain benefits if you are sued by a third party affected by a workplace injury, such as a family member of the injured worker.
3 - Are Design Professional Workers' Compensation policies unique from other policies?
Yes, most, if not all of your client contract agreements will require adding two endorsements, in particular the first endorsement:
- Blanket Waiver of Subrogation Endorsement: This endorsement removes policy subrogation rights against any client from work performed under a written contract or agreement.
- Longshore and Harbor Workers’ Compensation Act Coverage Endorsement (LHWCA): This often mandated endorsement, allows your firm to meet contract requirements.
4- Can coverage apply if we travel on business?
Your policy provides incidental workers’ compensation coverage for out-of-state* business travel for periods of time not exceeding 30 days. (i.e., Other States Insurance). Your policy only needs to be modified if business travel exceeds this 30 day period, regular business operations begin, or employees are hired who will live in that state.
* Meaning, states that are not listed in the workers’ compensation coverage part of your policy
If your employees travel to foreign countries, coverage can be provided, by endorsement to your workers’ compensation policy, or by purchasing a separate policy. If by endorsement, coverage applies to employees who were hired in the United States while traveling, or temporarily residing, outside of the United States.
5- Do we have to provide Workers’ Compensation coverage for our executive officers, partners, or members?
If you are a closed corporation (i.e., company stock is owned by its executive officers) or a partnership, most states allow you to exclude coverage for these individuals. For example, if coverage is desired in California, only $101,400 of payroll per person (i.e., 2011 guidelines) is counted to obtain coverage.