Insurance Designed To Protect Business Owners
Workers compensation policies protect job providers against lawsuits when their workers are injured on the job and help to ensure workers are paid even when off the job due to workplace injuries and accidents.
Workers Compensation Protects Employers And Workers Alike
No better type of employers liability insurance protection exists than the compensation insurance designed to ensure employees and job providers alike benefit for affordable and timely protection against injury-causing workplace accidents.
Required by law in nearly every state, workers compensation is a type of employers liability insurance policy that ultimately is designed to prevent lawsuits from tying up state courts every time a worker is injured on the job. Instead of filing a lawsuit against a job provider upon suffering some sort of workplace injury, the worker accepts benefits from the employer-provided Workers compensation employers liability insurance. The policy will pay for medical costs, physical therapy treatments, lost income from time off work and other losses a worker suffers when injured on the job. If dismembers, such as losing part of a finger or other serious injury, the policy will pay a predetermined amount based on the type and extent of injury.
When workers are disabled from workplace accidents, the insurance policy will indemnify them against financial losses for the duration of the injury, up to and including lifetime payments. The insurer might offer lump-sum settlement instead, but the worker would have the option if such an offer were made.
In exchange for accepting financial benefits from workers compensation employers liability insurance policies, workers surrender their right to file lawsuits against their job providers. If they refuse the benefits, then they affirm their rights to file lawsuits, which is a good move if the potential liability is great enough and the employer has the resources to pay a large settlement that is far greater than what a worker's compensation insurance policy might pay. Instances of gross negligence or downright criminal activity on the part of employers would warrant such lawsuits, among other serious oversights on the part of employers.
While the worker surrenders the right to sue an employer after accepting benefits from worker's compensation claims, the insurer still could file a lawsuit against the employer through the subrogation clause. In any insurance contract, the policyholder generally is subject to subrogation, which essentially transfers the right to file a lawsuit to the insurance company after it has paid an insurance claim arising from a covered peril. The injured party still could sue for amounts exceeding that provided by an insurance claim if warranted, but the insurance company has the right to file a lawsuit to recover the amount paid out in a claim.
Many property and casualty insurance companies exercise their subrogation rights after paying auto and home insurance claims, but many insurers who underwrite coverage for worker's compensation claims generally are reimbursed by reinsurance companies, which provide coverage for insurers.
Workers compensation employers liability helps to ensure injured workers and their employers remain financially fit. Cobb-Hall Insurance also offers General Liability Business Insurance. For More Information Please Visit http://www.cobbhall.com/business.php
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