You may have heard of Workers Compensation insurance, but what is excess Workers Compensation insurance? An excess Worker’s Compensation policy is purchased to help a self insured business owner, or employer, with any claims that fall under the Workers Compensation category that go over a specified amount. The policy can also be written with an unlimited cap, but would of course, cost more for the insurance premiums. You may decide to purchase the excess Workers Compensation insurance because you can afford to pay for most of your Workers Compensation claims but you don’t want to be responsible for a huge one that could hurt your company financially and seriously. The excess compensation policy will then cover your company for the claims that go over your specified amount.
There are some excess Workers Compensation insurance providers that will assume the risk for most of the claim but will also put a limit on the medical costs for each claim. For example, they may put a cap of $1,000,000 on any injury claim. In the event you want to be covered for the claims that go over this $1,000,000, you would need another excess compensation policy on top of the first excess compensation policy. This can be an important thing to consider if your company has a high risk of Worker’s Compensation claims. This may depend on the type of business you operate.
↓ Read the rest of this entry…
Recent Comments