Lost Wages and Medical Care
The workers compensation for your machine shop is designed to pay the costs of necessary and reasonable medical care when an employee is hurt or becomes ill while working for you. It also covers the costs of that worker’s lost wages if they are unable to return to the job right away.
Business Travel Protection
Your machine shop workers compensation policy covers you only in the state in which you have your shop. If you ever need your employees to travel to another state for work, you may not be covered. To protect yourself in the event that a worker is injured out of state while working, you may need to purchase additional coverage on your business insurance.
If a worker is injured in your machine shop, workers compensation automatically covers their medical care costs and their lost wages if necessary. There is no need for your employee to prove your liability because workers comp is a no-fault type of insurance. However, your worker might feel as if they can prove you were responsible for an injury. In this case, they may choose to sue you for damages. Your insurance will help you defray the costs of an attorney for your defense and any other related legal expenses if you are sued.
Employer’s Liability In Monopolistic States
In some states, employer’s liability is not automatically a part of your workers compensation. In monopolistic states, you are required to buy the workers compensation for your machine shop through the state fund. If you live in one of these states, you may need to purchase employer’s liability coverage as an option to ensure you are covered in the case of a law suit.
Legal expenses associated with a law suit can pile up quickly. If an employee sues you in an attempt to receive damages for an injury or illness, you could be facing attorney fees for your defense, the cost of an investigator to determine liability, court fees, and the cost of damages if the suit is successful. If you have employer’s liability coverage as part of your machine shop workers compensation, these costs will be taken care of.
Another type of law suit against you is possible when a worker gets hurt on the job. That injured employee may feel that a third party was liable for their accident. They may sue a manufacturer, for instance, if they believe faulty equipment caused their injury. The manufacturer could in turn sue you if they believe you were truly liable for the faulty equipment. The workers compensation insurance for your machine shop will help you pay the associated costs in the event of a suit from a third party, such as court fees, attorney fees, and awarded damages.