The Need for Excess Workers Compensation Coverage

When employees are injured while on the job, most companies are happy to provide them with financial support through workers compensation insurance. Yet those who rely on their general liability policy to cover all of their workers compensation needs often end up unpleasantly surprised at just how much they’re expected to cover in the wake of a workplace accident. When accident expenses exceed general liability coverage, employers are left with the unenviable task of having to decide between paying the extra expenses from company resources, or challenging employees’ assertions as to the extent of their injuries.

Who Really Needs it?

Fortunately, there is another option. With excess workers compensation coverage, companies are covered in the event of a severe employee injury. Yet the major obstacle that some have in accepting the need to add such protection to their regular insurance coverage is comprehending the likelihood that it will ever be needed. The immediate response to that is that every company may subject to an employee having a catastrophic injury. Those questioning the need for such coverage further should ask themselves these questions:

  • Do my employees use company resources that could put them in harm’s way (i.e., cars, heavy machinery)?
  • Do clients routinely visit my office?
  • Do I worry about liability issues in general?

If the answer to any one of those questions is yes, than one can certainly view the need for excess workers compensation as being justified.

Knowing just how likely one is to have to need an excess workers compensation policy may help make the decision to invest in such coverage that much easier. Remember that when it comes to workers compensation, it’s better to be prepared for the worst than to not be protected from it.