The Specialty Workers Comp Insurance Guide
Workers Comp Insurance. This guide provides information on excess, surplus and specialty lines small business insurance policies and risks.
Here you can find basic descriptions of the specific industry risks or specialty coverage types available for Workers Comp Insurance.
For certain types of small businesses, particularly new ones - it is often very hard to know what types of commercial insurance is needed, what the risks are that should be covered - and where to find coverage.
We wanted to provide reference for specialty commercial insurance to help our readers get a better understanding of Workers Comp Insurance policies they might need to do business.
Learn about Specialty Workers Comp Insurance to better understand common risks, exposures and the types of commercial insurance coverage available to protect your small business and it's operations.
Workers Comp Insurance Types
Click on the links below to learn more about Specialty Workers Comp Insurance types and coverages:
- Employers Liability Coverage Or Stop Gap Liability Insurance
- Equestrian Risk Insurance
- Excess Maritime Employers Liability Insurance
- Hazardous Industries Monoline Workers Comp Insurance
- Self-Insurance Retention (SIR) Programs
- Stop Loss Excess Aggregate
- Truckers Occupational Accident / Workers Comp Insurance
- United States Longshore and Harbor Workers Comp Act
- Workers Comp Insurance
- Workers Comp Excess Insurance
- Workers Comp Self-Insurers Bonds
What Is Employers Liability Coverage Or Stop Gap Liability Insurance?
The standard workers compensation policy consists of two coverages. Coverage A provides the state-mandated Workers Comp coverage. Coverage B is Employers Liability which provides coverage for worker injury liability situations not covered by Coverage A. The four states where workers compensation must be purchased through a state fund do not provide Coverage B so it must be purchased from another market. The coverage is provided by adding an endorsement to a Commercial General Liability coverage form or policy. If the business operates in multiple states, coverage can be provided by endorsement to the non-monopolistic state workers compensation coverage. Some carriers offer this coverage on a stand-alone basis.
What Type Of Insurance Do Equestrian Risks Need?
Horse owners ride for pleasure, show, or competition. Personal lines homeowners coverage provides some coverage but often not enough for serious riders. Equestrian risks liability policies are available to bridge the gap in coverage. Workers compensation coverage may also be needed to cover persons employed part-time, temporarily, or on a limited-help basis to assist in boarding, training stables, racing, or other equestrian-related activities. These underwriters handle this class of business:
What Is Excess Maritime Employers Liability Insurance?
Employers liability for maritime risks usually falls under the jurisdiction of either the United States Longshore and Harbor Workers Comp Act (USL&HWCA) or admiralty jurisdiction via the Jones Act. Coverage for workers involved in offshore oil drilling, marine diving or dredging, employed on fishing vessels, or serving as crew members on tugs, barges, ferries, scows, work boats, and pleasure yachts can be difficult to place because the work they perform is dangerous. Certain specialists well acquainted with maritime exposures provide excess maritime employers liability.
What Is Hazardous Industries Monoline Workers Comp Insurance?
Hazardous industries tend to have severity issues as opposed to frequency issues. This makes them more difficult to underwrite profitably. Effective management and proactive loss prevention are the keys to successfully writing these risks. Examples of industries that fall into this category are logging, trucking, agribusiness, oil and gas, maritime, and many types of manufacturing and construction operations.
What Are Self-Insurance Retention (SIR) Programs?
Self-insured retention (SIR) programs allow insureds to retain more control of their assets. While certain programs may have low retention levels, most exceed $100,000. The SIR amount often increases as the program matures due to effective asset planning. The insured is responsible for all claims within the SIR. Most insureds choose a third-party administrator (TPA) to handle those claims. A number of large insurers and brokerage firms provide TPA services for their accounts on either a fee basis or as part of a total risk management services program. Advantages of SIRs include reductions in insurance costs, use of the cash flow until a loss actually occurs, at which time the insured sets up a reserve fund to pay losses instead of the insurer paying, and better control of loss prevention. SIR programs are customized for each insured. Coverages that SIR programs often include are workers compensation, auto liability, and commercial general liability.
What Is Stop Loss Excess Aggregate?
Stop loss excess aggregate programs are similar to self-insured retention (SIR) programs because they both allow an insured to retain more control of its assets. While a traditional SIR program pays excess of specific loss amounts, the stop loss excess aggregate pays in excess of a set aggregate that applies over all losses. This allows the insured to have more certainty on the maximum loss amount for which it will be responsible in a given policy period. Most insureds choose a third-party administrator (TPA) to handle claims. A number of large insurers and brokerage firms provide TPA services for their accounts on either a fee basis or as part of a total risk management services program. The advantage of using an SIR is a reduction in insurance costs, use of the cash flow until a loss actually occurs at which time the insured sets up a reserve fund to pay losses instead of the insurer paying, and better control of loss prevention. The insured's primary concern is the unlimited exposure that can be resolved with the stop loss excess aggregate method. Coverages often include workers compensation, auto liability, and commercial general liability.
What Is Truckers Occupational Accident / Workers Comp Insurance?
This coverage is sold through trucking companies and covers the owners/operators who contract with them. The trucking company passes the premiums on to the insured truckers. Certain states require that trucking companies provide workers compensation for their contracted drivers and the carriers that provide the occupational accident coverage may provide that mandatory coverage.
What Is The United States Longshore and Harbor Workers Comp Act?
Federal workers compensation law applies to maritime employees who work on or over navigable waters that are in or adjacent to the United States. The Act specifically excludes sailors, seamen, masters, and crews of any ship, vessel, or watercraft because they are eligible for coverage under the Jones Act and the Merchant Marine Act. The workers subject to these Acts are also not eligible for state workers compensation benefits because they work on or over navigable waters. The USL&HWC fills this gap.
What Is Workers Comp Insurance?
Workers compensation insurance is based on a system of state laws that require employers to provide medical care, disability benefits, and lost wages to employees injured or disabled in the course of their employment.
What Is Workers Comp Excess Insurance?
This coverage is an important part of any self-insured workers compensation program. The insured first must qualify as a self-insurer and then post the required bond with the state industrial commission. Because loss experience can be unpredictable, the insured purchases excess insurance that triggers above a specified retention level. The excess insurance carrier pays losses above the insured's retention up to an agreed amount. The excess carrier may also offer additional services to the insured, such as claims handling, loss control, and various record keeping services.
What Are Workers Comp Self-Insurers Bonds?
Special bonds are required of organizations that choose to self-insure their workers compensation exposures. They must apply to the state's Workers Comp Board, register to be a self-insurer, and post a bond that guarantees that claims will be paid.
Workers Comp Insurance - The Bottom Line
We hope that the Workers Comp Insurance helps you to better understand the some of the specialty small business commercial insurance policies available for your business. To find out what types of coverage your unique business needs, speak to a professional commercial broker with experience in insuring businesses like yours.
Specialty Small Business Insurance Guide By Industry, Risk Or Policy Type
- Accident And Sickness / AD&D
- Aircraft And Airports
- Amusement Parks And Rides
- Animals And Birds
- Arts And Antiques
- Auctions And Farmers Markets
- Automobiles, Trucks And Recreational Vehicles
- Business Risks
- Clubs And Leisure Time Activities
- Community Service Organizations
- Dealers And Distributors
- Directors And Officers Liability
- Drugs And Alcohol
- Employee Protection
- Environmental Risks
- Errors And Omissions
- Farm Risks
- Financial Institutions And Services
- Firearm And Shooting
- Food And Restaurants
- Hazardous Materials
- Health Risks
- Hotels And Motels
- Inland Marine
- Insurance Services
- Machinery And Tools
- Medical Centers And Clinics
- Medical Malpractice
- Mobile And Modular Homes
- Motorcycle Risks
- Natural Disasters
- Nonprofit Agencies
- Oil And Chemical
- Physical Damage
- Prize Indemnification
- Product Liability
- Real Estate
- Retail Stores
- Schools And Education
- Security Risks And Equipment
- Service Businesses
- Sports And Hobbies
- Substandard Risks
- Weather Related
- Workers Comp
Types Of Small Business Insurance - Requirements & Regulations
Perhaps you have the next great idea for a product or service that you know will appeal to your local area. If you've got a business, you've got risks. Unexpected events and lawsuits can wipe out a business quickly, wasting all the time and money you've invested.
Operating a business is challenging enough without having to worry about suffering a significant financial loss due to unforeseen and unplanned circumstances. Small business insurance can protect your company from some of the more common losses experienced by business owners, such as property damage, business interruption, theft, liability, and employee injury.
Purchasing the appropriate commercial insurance coverage can make the difference between going out of business after a loss or recovering with minimal business interruption and financial impairment to your company's operations.
Insurance is so important to proper business function that both federal governments and state governments require companies to carry certain types. Thus, being properly insured also helps you protect your company by protecting it from government fines and penalties.
Small Business Insurance Information
In the business world, there are many risks faced by company's every day. The best way that business owners can protect themselves from these perils is by carrying the right insurance coverage.
The The National Association of Insurance Commissioners (NAIC) is the U.S. standard-setting and regulatory support organization. Through the NAIC, state insurance regulators establish standards and best practices, conduct peer review, and coordinate their regulatory oversight.
Commercial insurance is particularly important for small business owners, as they stand to lose a lot more. Should a situation arise - a lawsuit, property damage, theft, etc. - small business owners could end up facing serious financial turmoil.
According to the SBA, having the right insurance plan in place can help you avoid major pitfalls. Your business insurance should offer coverage for all of your assets. It should also include liability and casual coverage.
Types Of Small Business Insurance
Choosing the right type of coverage is absolutely vital. You've got plenty of options. Some you'll need. Some you won't. You should know what's available. Once you look over your options you'll need to conduct a thorough risk assessment. As you evaluate each type of insurance, ask yourself:
- What type of business am I running?
- What are common risks associated with this industry?
- Does this type of insurance cover a situation that could feasibly arise during the normal course of doing business?
- Does my state require me to carry this type of insurance?
- Does my lender or do any of my investors require me to carry this type of policy?
A licensed insurance agent or broker in your state can help you determine what kinds of coverages are prudent for your business types. If you find one licensed to sell multiple policies from multiple companies (independent agents) that person can often help you get the best insurance rates, too. Following is some information on some of the most common small business insurance policies:
|Business Insurance Policy Type||What Is Covered?|
|General Liability Insurance||What is covered under commercial general liability insurance? It steps in to pay claims when you lose a lawsuit with an injured customer, employee, or vendor. The injury could be physical, or it could be a financial loss based on advertising practices.|
|Workers Compensation Insurance||What is covered under workers compensation insurance? This type of insurance protects a business and its owner(s) from claims by employees who suffer a work-related injury, illness or disease. Workers comp typically provides the injured employee with benefits to cover medical expenses, a portion of his/her lost wages, rehabilitation costs if applicable, and permanent partial or permanent total disability.|
|Product Liability Insurance||What is covered under product liability insurance? I pays an injured party's settlement or lawsuit claim arising from a defective product. These are usually caused by design defects, manufacturing defects, or a failure to provide adequate warning or instructions as to how to safely use the product.|
|Commercial Property Insurance||What is covered under business property insurance? General liability policies don't cover damages to your business property. That's what commercial property insurance is for. It protects all of the physical parts of your business: your building, your inventory, and your equipment, giving you the funds you need to replace them in the event of a disaster. If you work from home, you might consider a Home Based Business Insurance policy instead.|
|Business Owners Policy (BOP)||What is covered under a business owners policy (BOP)? This is a policy designed for small, low-risk businesses. It simplifies the basic insurance purchase process by combining general liability policies with business income and commercial property insurance.|
|Commercial Auto Insurance||What is covered under business auto insurance? This type of insurance covers automobiles being used for business purposes. This could include a fleet of business-only vehicles or a single company car. In some cases it might cover your car or your employee's car while they're being used for business. These policies have much higher limits, ensuring you can cover your costs if one of these vehicles gets into an accident.|
|Commercial Umbrella Policies||What is covered under commercial umbrella insurance? This type of policy is a sort of "gap" insurance. It covers your liability in the event that a court verdict or settlement exceeds your general liability policy limits.|
|Liquor Liability Insurance||What is covered under liquor liability insurance? It covers bodily injury or property damage caused by an intoxicated person who was served liquor by the policy holder.|
|Professional Liability (Errors & Omissions)||What is covered under professional liability insurance? This type of business insurance is also known as malpractice oe E&O. It covers the damages that can arise from major mistakes, especially in high-stakes professions where mistakes can be devastating.|
|Surety Bond||What is covered under surety bonds? Bonding is a contract where one party, the SURETY (who assures the obligee that the principal can perform the task), guarantees the performance of certain obligations of a second party, the PRINCIPAL (the contractor or business who will perform the contractual obligation), to a third party, the OBLIGEE (the project owner who is the recipient of an obligation).|
Who Needs General Liability Insurance? - Virtually every business. A single lawsuit or settlement could bankrupt your business five times over. You might also need this policy to win business. Many companies and government agencies won't do business with your company until you can produce proof that you've obtained one of these policies.
Business Insurance Required by Law
If you have any employees most states will require you to carry worker's compensation and unemployment insurance. Some states require you to insure yourself even if you are the only employee working in the business.
Your insurance agent can help you check applicable state laws so you can bring your business into compliance.
Other Types Of Small Business Insurance
There are dozens of other, more specialized forms of small business insurance capable of covering specific problems and risks. These forms of insurance include:
- Business Interruption Insurance
- Commercial Flood Insurance
- Contractor's Insurance
- Cyber Liability
- Data Breach
- Directors and Officers
- Employment Practices Liability
- Environmental or Pollution Liability
- Management Liability
- Sexual Misconduct Liability
Whether you need any or all of these policies will depend on the results of your risk assessment. For example, you probably don't need an environmental or pollution policy if you're running an IT company out of a leased office, but you would need data breach and cyber liability policies to fully protect your business.
Also learn about small business insurance requirements for general liability, business property, commercial auto & workers compensation including small business commercial insurance costs. Call us (855) 767-7828.