What is Excess Workers Compensation?

Far too many business owners, executives, managers, or other corporate decision makers underestimate the value of an excess workers compensation insurance policy. Most view a general liability policy as sufficient to meet their needs, or worse yet, think that this is an area where money can be saved by going with lesser options. Often, the end result of these errors in judgment is having to pay a large portion of a settlement directly from a company’s own assets, which can spell financial disaster for some businesses.

No Company is Immune from Accidents

With an excess workers compensation policy (or an “umbrella policy,” as it’s often referred to), a company is allowed monetary resources beyond that which is expected from general liability insurance. Such coverage can be ideal for dealing with business –related accidents involving:

  • Company or employee vehicles
  • Equipment
  • Dangerous working conditions

Many may feel as through such coverage is unnecessary given their line of work, yet the truth is that no one is immune from a work-related accident, be it a manager getting in to a car accident on the way to a meeting, or an employee slipping and falling in the company parking lot. For just a few extra dollars on top of one’s other insurance premiums, his or her company will be protected against high injury-related expenses or litigation stemming from workplace accidents.

Why sacrifice peace-of-mind for a quick buck? Those who ignore the potential of a catastrophic injury to one of their employees being able to send their businesses into financial ruin are just inviting such a scenario to happen. On the other hand, by accepting the small extra monthly expense that a good excess workers compensation policy offers, one guarantees that his or her company will be protected against any future injury-related crises.

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