October 05, 2018

Should owners exclude themselves from workers' compensation coverage?

Owners of companies typically have the choice of whether or not to include themselves on their company’s workers’ compensation insurance policy. We see many owners choosing to exclude themselves to save the premium they would otherwise owe on their payroll. Often we hear, “I would never sue myself!”
That, however, is not the full picture. The benefits of being included on workers’ compensation insurance could greatly outweigh the cost in the event of a serious injury. Consider the following points:
• Workers’ compensation pays all medical expenses without the owner having to meet deductibles or out-of-pocket maximums through their health insurance provider.
• Workers’ compensation pays for lost wages in the event of a long-term recovery.
• The owner’s spouse and family have recourse to collect loss of consortium, loss of benefits, loss of income in the event that the owner is seriously injured or killed as a result of an employer’s liability claim.
• Worker’s compensation policies will pay for rehabilitation, some even include benefits for occupational rehabilitation.
It is worth obtaining a quote to see what the cost would be for an owner to insure him or herself under the company’s workers’ compensation plan. Depending on the line of work the company is in, the premium could be under $20 a month to enjoy all of the above benefits.