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workers comp exists to protect your employees
Manufacturer Workers Comp Insurance
Regardless of what you manufacture, you need the right workers compensation insurance to protect your employees and yourself. This means that whether you make clothing, electronics, furniture, tools, or any other products, having manufacturer workers comp insurance makes sense. As you prepare to obtain this type of policy, consider what it covers.
Lost Wages and Medical Care
$79 A Month
One of the main reasons that workers comp exists is to make sure injured employees do not have to pay for their own medical care after they are hurt at work. This is why your manufacturer workers comp insurance will pay for your employee's bills stemming from a hospital stay or doctor's visit, along with any physical therapy, medications, surgeries, labs, or other medical costs. In addition, the policy will pay for any wages the employee loses as he or she recovers.
Business Travel Protection
If you and your employees travel for work, you will want to add business travel protection to your manufacturer workers comp insurance policy. This ensures that your business is covered no matter where your employees are when they are injured. Even if your employees do not travel far for work, but your business is located near a state border, this coverage could be useful in case they ever venture into the next state for business.
The typical workers compensation policy actually has two parts. The first part covers the costs of an injured employee's medical bills and lost wages, while the second part pays for anything that the first part does not cover. This part is called employer's liability, and its coverage extends to lawsuits. In most cases, it covers four types of claims. One example is loss of consortium, which is a type of lawsuit that the spouse can file because the injured employee can no longer participate in marital relations.
Another type of lawsuit covered by employer's liability is consequential bodily injury, in which the injured employee's family member becomes hurt or ill as a result of the employee's work accident and sues you for the cost of medical bills. Dual-capacity lawsuits are also covered by employer's liability coverage, and they occur when a product that your business manufactured caused the injury, so you are responsible as both the employer and the manufacturer. On the other hand, if equipment made by another manufacturer caused the injury, you could be facing a third party over action. This could happen if your employee sues the manufacturer of the equipment that injured him or her at work, and then the manufacturer sues you because you did not properly maintain the equipment.
Employer's Liability in Monopolistic States
Some states do not include employer's liability on workers compensation policies. Those states are Ohio, Washington, North Dakota, and Wyoming. If your business is located in one of these states, you will have to buy stop-gap insurance to get the same protection as employer's liability coverage. In most cases, it will be part of your general liability policy rather than your manufacturer workers comp insurance.
The point of your manufacturer workers comp insurance policy is to protect both your employees and your business. For this reason, it will pay for not only an injured employee's medical bills and lost wages, but also your legal fees. These may include the amount you will pay to defend your business in court, and also the total of any settlements or damages for which you are deemed responsible.
Third-party suits, also called third party over actions, occur when you are sued by another company that was also affected by the employee's injuries. For example, if your employee sued the manufacturer of the equipment that injured him or her, that manufacturer could then sue you and recoup some or all of the damages. You will be glad to have manufacturer workers comp insurance if this occurs.