Workers compensation is an important component to consider when purchasing commercial insurance in National City. California law requires employers to carry workers’ comp, and you never know when an employee might sustain an injury. However, it is just as crucial for employers to be aware of certain costs a workers’ compensation policy will not cover. The staff at American Tri-Star discusses 4 of these unique expenses.
1. OSHA Penalties
The primary responsibility of the Occupational Safety and Health Administration (OSHA) is to make sure business owners are following through on maintaining workplace safety. If OSHA ever visits your workplace and discovers safety violations, your agency may need to pay steep fines. A workers’ compensation policy does not cover the cost of these penalties, even if an OSHA violation caused an employee’s injury.
2. A Replacement Employee’s Wages
Depending on the policy your agency carries, workers’ comp typically covers two-thirds of an injured employee’s wages. However, if the employee is out of work for an extended period and a replacement employee is hired, the policy will not cover the temporary employee’s wages.
3. Third-Party Damages
If a random passerby, delivery worker, client, or customer becomes involved in the same accident as your employee, your workers’ compensation policy will not cover any expenses related to injuries the third party sustains. Your policy only covers expenses directly related to your employee’s injury.
4. Funds for Increasing Workplace Safety
A National City workers’ compensation insurance policy will not reimburse you for any investments you make toward increasing workplace safety. However, investing in safety training and equipment can reduce the risk of future injuries and ensure your employees know how to do their jobs safely and properly, which can help you prevent workers’ compensation claims in the first place.
To learn about additional expenses a worker’s compensation policy will not cover, contact the insurance experts at American Tri-Star. In addition to our high-quality commercial insurance, we also offer the affordable home, health, motorcycle, and car insurance National City residents prefer. Give us a call today at 619-474-3900 and one of our knowledgeable agents would be happy to answer your questions and provide a free quote.