Why should you have workers' compensation insurance? In addition to being required by law, it provides the exclusive remedy for on-the-job injuries and occupational disease. Having this coverage enables you to have limited civil liability, avoid double compensation and avoid penalties and fines.
Workers’ compensation provides significant and valuable benefits to both employers and employees. All states have laws requiring insurance for workers and those laws prescribe the amount and duration of the benefits provided. The policy provides the mandatory benefits required by the various state laws for accidental work-related injuries that occur in the course of employment. The injury must arise from and be related to the injured worker’s job duties. The policy also covers costs for work related disease or death.
Employers liability, a component of coverage included in a workers' compensation policy, covers the insured employer against its common law or tort liability for employee injuries that fall outside the scope of the state laws or acts that are separate and distinct from the liability imposed by workers' compensation laws. Employers liability coverage responds to allegations of gross negligence on the part of the employer.