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Workers Compensation Insurance
Workers Compensation Insurance for Auto Dealers
Lost Wages And Medical Care
When you employ anyone in your auto dealer business, workers compensation is a legal requirement. It is necessary for providing medical care and lost wages in the event that someone is hurt or becomes ill in the course of working for you. Your insurance covers these costs.
Business Travel Protection
A typical workers compensation policy for an auto dealer will cover only incidents that occur in the state in which you do business. However, there is a chance that you will send an employee out of state on business. In this case, you may need extra coverage. You can purchase business travel protection as an option on your business insurance policy.
Employer’s Liability
Your auto dealer workers compensation insurance is designed to pay medical costs and lost wages to your injured employees without the need to prove liability. If, however, your worker thinks that they can prove you were liable for an incident, they may sue you to win damages. In this event, your policy will help you to pay the costs of legal fees and damages if they are awarded to the injured party.
Employer’s Liability In Monopolistic States
In a monopolistic state, your auto dealers workers compensation insurance must be purchased through a state fund. Payments made to hurt or sick employees come from this fund. If you do business in a monopolistic state, you may need to purchase additional coverage for employer’s liability. It is not necessarily covered by the state fund in these states, but is an important type of coverage to hold.
Legal Expenses
The possibility of a law suit may seem unlikely, but there is every chance that you could be faced with one if you hire employees for your auto dealer. Workers compensation insurance is crucial to have so that you need not cover these legal costs by yourself or through your business assets. Your insurance will pay expenses associated with hiring an attorney for defense, an investigator to determine liability, court fees, and damages in case they are awarded to your worker.
Third-Party Suits
Another instance is rare, but certainly possible: being sued by a third party. If your employee uses equipment on the job that causes an accident and injury, they may insist that the manufacturer of that equipment was at fault. If they feel that it can be proven, they may sue this third party. The third party might turn around and sue you or your business based on a claim that you did not adequately maintain the equipment. To avoid losses to your auto dealership, workers compensation is important in this situation. It can help to pay for your attorney defense fees, court fees, investigations into the incident, and damages if the third party is successful in suing you and your business. Although the scenario is less likely than others, it is still possible and important to hold employer’s liability coverage in your workers compensation policy.