Lost Wages and Medical Care
The main reason for you to hold workers compensation, besides the legal requirement, is to avoid the huge costs that can be incurred from hurt or sick employees. If the injury or illness happened at work, your employee is entitled to coverage for medical expenses as lost wages if they cannot work. Your workers compensation covers these costs.
Business Travel Protection
If your employees need to travel out of state for work, maybe as buyers for your retail store, your workers compensation may not cover injuries. You may need to purchase additional coverage for your insurance that protects you in the case that a travelling employee becomes ill or gets hurt.
In order to receive entitled benefits from the workers compensation that you hold for your retail store, your employee does not need to prove your liability. If however, they believe they can prove it, they may choose to sue you. Your workers compensation business insurance contains coverage for employer’s liability. This covers your legal costs in the event that you are sued. It will also pay for the damages, if they are awarded to your worker.
Employer’s Liability In Monopolistic States
If you have your store in a monopolistic state, you are required to purchase your workers compensation business insurance through a state fund. When you make a claim for an employee, compensation is paid from this fund. It may not, however, include employer’s liability. If you do business in one of these states, you may need to purchase additional coverage for this purpose.
In the event that you are faced with the need to use the employer’s liability portion of your workers compensation for your retail store, your legal expenses should be covered. You may need investigative services to determine the true liability of the incident. You will need an attorney for your defense, and you will face court fees and possibly damages. Your workers compensation can help you pay these costs.
When an employee is injured in your store, they need not prove any liability to receive payments from your retail store workers compensation. But, if they believe that a third party, such as the manufacturer of equipment they were using is at fault, they may sue that manufacturer for damages. The third party, in turn, may decide to sue you. They may believe that you were truly at fault for the accident or illness. If the equipment was faulty, the manufacturer may try to claim that it was because you did not maintain it properly. In this instance, your employer’s liability coverage will protect you and help pay for investigative costs, attorney and court fees, and any damages. Damages are unlikely, as workers compensation is no-fault insurance. However, the fees associated with settling the dispute can be high.