Workers Compensation Insurance

workers compensation insurance

DefinitionWorkers Compensation Insurance is an insurance policy devised to compensate workers whom have become injured on the job or contract a work-related illness. The policy is also designed to cover an employer’s potential liability arising out of the employee’s work-related injury.

Important things that you need to know about Workers Compensation Insurance:

  • Texas is the only state in which an employer can decide whether to purchase workers compensation or not. With recent workers compensation reform and drastic price reduction in Texas, the protections of worker’s compensation far out way the risks for most employers in Texas.
  • It is possible to protect your experience modifier. NCCI continues to make changes to expected losses that are out of our control. By establishing a threshold for “notice only” or “report only” claims, your business can drastically reduce your experience modifier over time. Another claims cost saver is a quality return to work program getting injured workers back quicker and off of the insurance company payroll.
  • Make sure you are getting all of the discounts and the scheduled credits you deserve. A good agent would never accept the first workers compensation quote they receive from the carrier. There is ALWAYS another discount for a health care network, safe working environment, formal safety program, return to work program or even a dividend at the end of the year.
  • The $1,000,000 limit that you see on your workers compensation policy has nothing to do with medical or indemnity payments. The $1,000,000 is a limit for employers liability which is coverage for claims in which an employer may be held legally obligated to pay but is not covered under the workers compensation law.

Read More about Workers Compensation Insurance

Swingle, Collins & Associates specializes in commercial insurance coverage. The descriptions of coverages listed on this website are brief and subject to the provisions, limitations, and exclusions that can only be expressed in your policy and related endorsements. For additional information of how Swingle, Collins & Associates can assist in meeting your coverage needs please contact your dedicated risk manager to discuss the benefits and services of workers compensation insurance coverage.

The information contained on this page is provided for informational and educational purposes only. It contains general information on insurance issues and may not reflect the most current developments in insurance coverage and is unlikely to apply in all factual scenarios. The information does not include all the terms, coverages, exclusions, limitations or conditions that may be contained in the actual insurance contract language. The policies themselves must be read for those details. Sample policy forms will be made available upon reasonable request.

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