Beware: Three Workers Compensation Coverage Gaps That Can Cost You A Lot Of Money At Time Of Injury

 

Let me ask you these quick questions:

  • Have you added any new locations or facilities since the renewal of your workers compensation policy?

  • Do you have any employees who work on or near navigatable rivers, lakes or seas?

  • Do you have any employees who travel overseas on business?

If the answer is “Yes” then I strongly recommend you obtain an exposure survey immediately, have your workers compensation policy reviewed, and proper endorsements be provided. Failure to do so could exposure your organization to uninsured worker injury claims. Here’s why.

 

Regarding question 1, you may be surprised to learn that your workers compensation policy may not pay for your workers compensation claims. If you have operations on the effective date of the workers compensation policy in a state not listed in the coverage schedule, there will be no automatic coverage unless the state is listed in the policy within 30 days. In short, you renew coverage and, for whatever reason, do not list that state in the workers compensation policy, you have 30 days to report the state to the insurance company and list that state in the policy. During that 30 day period there would be coverage under Part Three – Other States Insurance. After the 30 day period there would be no coverage whatsoever.

 

Regarding question 2 above, there is not coverage under the standard workers compensation policy for any benefits or liability suits involving federal workers compensation and federal employer liability laws. This would include the Longshoreman & Harbor Workers Act. This act, along with its amendments, provides benefits for these exposures. There are endorsements that can be added to your workers compensation policy to properly insure these exposures.

 

Third, regarding employee’s traveling or working overseas, implicit in the construction of the standard workers compensation is a territorial limitation for workers compensation benefits. The intent is to insure benefits mandated in specified states located in the United States. These exposures can be insured entire by endorsement to your workers compensation policy or by the purchase of a specially designed international workers compensation policy.

 

CompEraser provides a number of on-line, on-demand resources to help you reduce the total cost of worker injuries. Resources include the formalization of your safety team, injury prevention, OSHA compliance, safety training, workers compensation disability management, plus more. These resources are available 24/7 and used irrespective of which workers compensation carrier you select. Its patent-pending technology also provides unique financial reports for monitoring the effectiveness of your safety and health program on an on-going basis. For more information visit our website at www.CompEraser.com.