Lost Wages and Medical Care
Besides being a legal requirement, one of the most important reasons to have workers compensation for your manufacturing company is to protect you when employees suffer accidents on the job. If a worker is injured or becomes ill while working for you, your business insurance will help pay for their reasonable medical care, rehabilitation, and lost wages if they cannot return to work immediately.
Business Travel Protection
Most typical workers compensation policies for manufacturers cover accidents only within the state that you operate. However, there is a good chance you will need to send a worker out of state for business. In the event that they are hurt while working for you out of state, you may need to carry additional coverage. If you do have travelling employees, you need to be sure that you are covered.
In order to receive benefits from your manufacturers workers compensation, your employees do not have to show that you were the cause of their accident. As long as the incident occurred on the job, they are entitled to benefits. If they feel they can prove you were liable, they may sue you. In this case you could be facing steep fees from attorneys, the court, and damages. The employer’s liability portion of your workers compensation can help by covering these costs.
Employer’s Liability In Monopolistic States
If you operate in a monopolistic state, you may need additional coverage for employer’s liability. In a monopolistic state, you are required to purchase workers compensation for your manufacturing company through a state fund. In these states, employer’s liability coverage may not be included. To protect yourself and your business, you should determine if you will have that coverage and if not, purchase it as an option.
The threat of being sued by an employee is a very real one. Although in most cases, an injured employee will simply take workers compensation benefits from your manufacturing company, some may feel they can get more by suing. Your insurance is an important resource for covering the associated legal costs such as investigative needs, attorney defense fees, court fees, and any damages awarded by the court.
Another possibility is that an employee will attempt to sue a third party, which may in turn sue you. This may happen if an injured worker believes that fault lies with someone else, such as a client. Your manufacturers workers compensation can help you pay for the legal fees associated with this scenario. As with being sued by an employee, being sued by a third party will require you to hire a lawyer for your defense and an investigator to determine true liability. You could also be faced with steep court fees and even damages if the third party sues you successfully.