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Common misunderstanding in Workers Comp for agents

Part one:  Omega is your partner

Part two:  Common misunderstanding in Workers Comp

Part one:  Omega is your partner

More and more agents are finding out that having a key partner like Omega Insurance Solutions can help them gain more commercial customers by helping our their clients with their workers comp policy.  In my 20 years of writing workers comp through independent insurance agents, I have discovered not all agents are the same as expected, but they all do share some commonalities as well like:

  • Agents want the bottom line even if it is a quick decline, I can usually do that.
  • Agents needs someone who knows more about workers comp than they do.  I hope that is the case with Omega, but I learn everyday;  We certainly specialize in WC.
  • Agents need WC many times as the one coverage needed for them to gain control over the client’s other commercial coverages.
  • Agents do not often understand the nuances of WC so they need a partner like Omega who can help them navigate WC. 
  • Agents want fast service.  Everyone promises this.  Omega is pretty good at delivering quick turnaround.

If you are like most agents, you should find Omega to be a great resource for helping you accomplish your goals.  Omega has an amazing reputation with our 17 carriers due to our ability to write qualifying business that we pre-underwrote to their appetite guidelines.  We maintain an average 20% loss ratio with our markets which speaks well to our staff who do such a terrific job of pre-underwriting the submissions you send our way.

Don’t forget our available training: Webinar Training

Part two:  Common misunderstanding in Workers Comp

One of most common misunderstandings I see in workers comp with agents and CSRs is the concept of limits.  Workers comp has two parts.  Part 1 is Workers Compensation which covers the medical expense for an injury and if needed the indemnity (partial wages while out of work).  Part 1 has no stated limits.  Part 2 is Employers Liability which is separate coverage for liability for the owners of the company.  Part 2 has standard or statutory limits of $100,000/$500,000/$100,000 (Each Accident/Disease-Policy Limit/ Disease-Each Employee) or they can elect to increase limits on part 2 to either $500,000/$500,000/$500,000 or $1,000,000/$1,000,000/$1,000,000.

So, when talking about limits with workers comp, remember the stated limits only applies to part 2 Employers Liability.  Part 1 WC has no limits.

How Employer’s Liability Coverage Works

Employer’s Liability Insurance usually covers all types of employer’s liability claims unless the policy specifically excludes them. However, some claims are more common than others. Employer’s Liability lawsuits typically involve one or more of the following four claims:

  • Third party over actions. Another party that was held liable for your employee’s injury files this kind of lawsuit against your business. So say, for example, you own a small construction business. One of your employees was injured using a piece of machinery that you had not properly maintained. The employee sues the manufacturer of the equipment, and the manufacturer turns around and sues you for contributory negligence. (Note: in these cases, the employee can still collect Workers’ Comp benefits and file a lawsuit against the third party.)
  • Loss of consortium. An injured employee’s spouse files this type of lawsuit. They sue your business because their spouse is no longer able to “engage” in marital relations after their work injury.
  • Dual-capacity suits. An employee can file this type of lawsuit against their employer when a product the employer manufactures is the cause of their injury. That means you would be liable as both an employer and as a manufacturer.
  • Consequential bodily injury. If your employee’s family members suffer bodily injuries as a consequence of the employee’s injury, they could sue your business. For example, say your roofer’s wife suffered an aneurysm from high blood pressure / stress after he fell off a roof and became paralyzed. She could sue you for medical damages.

When these claims happen, Employer’s Liability Insurance can cover your business’s…

  • Legal defense fees.
  • Settlements.
  • Damages or judgments.
  • Other court costs.

You don’t pay extra for Employer’s Liability coverage unless increased limits is selected. 

As a reminder, we value our many loyal agents and welcome your feedback.  Let us know what topics from below suggestions or beyond you would like our blog to cover:

Blog Topics?

  • The Do’s and Don’t’s of WC
  • What questions should I ask prospects?
  • Tips for accurate and fast quotes
  • What is a PEO?
  • Common WC questions
  • Omega WC niches

Until next time, stay in touch, let us know your thoughts or input and send me WC apps to quote for you soon.

Omega Blog from Keith, the Workers Comp Whisperer.

Omega Insurance Solutions
1820 E. Edgewood Drive
Lakeland, FL 33803
We write Artisan Contractors

Tel: 866-997-0711  X 205
Fax: 866-611-9598
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