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Workers Compensation & Staff Benefits

Understanding Workers Compensation

Typically, a worker’s compensation policy is written in two parts: “Part One – Workers Compensation,” and “Part Two – Employers Liability.”

Under Part One, the insurance provider provides coverage for whatever the state-required amounts of compensation may be. Each state determines features such as:

  • The amount of benefits of which an employee is entitled
  • How impairments are to be evaluated
  • How care is to be delivered
  • How claims are to be handled
  • How disputes are to be resolved

Unlike many other types of insurance, workers compensation coverage has no celling or limit on the policy amount. The insurance provider accepts the statutory obligation of whatever the employer is legally obligated to pay as a result of the injury.

Part Two of the policy provides coverage for an employer who is sued by an employee for work-related bodily injury or illness that isn’t subject to the state statutory benefits.

Examples include:

  • Third-party Over Suit: An injured worker files suit against someone other than their employer, and that third party then seeks to hold the employer responsible.
  • Loss of Consortium: The spouse or family member of an injured worker sues the employer as a result of their significant other’s injuries.

IC Insurances –Auto, Cargo and GL

Auto

If you rely solely on IC drivers using their own equipment, then a Hired/Non-Owned Auto Liability policy for $1,000,000 is needed. It will provide protection to you, as the courier company, should you be named in a claim or legal proceeding as a result of an auto claim involving your IC driver. It provides no coverage to an IC driver, but it does provide your company with legal defense and indemnification in the claim, should you need it. If you also have a fleet of vehicles, this can sometimes be included on the insurance policy you have for your fleet.

Cargo / Bonding

Much like the IC, you have a responsibility to keep customers’ goods safe and the use of a good Motor Truck Cargo insurance policy is needed. Your use of ICs also necessitates the need for courier/dishonesty bonding which will protect against first-party theft and allow you to say your drivers are “bonded." Policy limits (in both cases) should be the same and should be high enough to cover the value of replacing customers’ goods. It should be noted that if you require cargo insurance from your ICs, you could increase your own cargo deductible to match the policy limit they are providing, without duplicating or sacrificing coverage, and potentially saving premium dollars.

General Liability

Once again, you likely need the same standard limits ($1,000,000 per occurrence and $2,000,000 general aggregate) as the ICs. But it's possible your landlord or customers may ask for increased limits, which are available. This coverage will provide protection to you, as the courier company, should you be named in a claim or legal proceeding as a result of non-auto or non-cargo related claim. It provides no coverage to an IC, but it does provide your company with legal defense and indemnification in the claim, should you need it.

Employment Practices Liability

Depending on the nature of your business, there are several different options from which to choose so working with an insurance broker who understands the unique needs of your business can help you successfully navigate the intricacies of EPLI.

Most employment practices liability insurance carriers provide coverage for legal costs, settlements and judgments that arise from claims stemming from the following:

  • Discrimination (based on age, race, gender and other factors)
  • Sexual Harassment
  • Wrongful Termination
  • Breach of Employment Contract
  • Infliction of Emotional Distress or Mental Anguish
  • Failure to Employ or Promote
  • Wrongful Discipline or Demotion
  • Defamation
  • Family Medical Leave Act (FMLA) Violations

Data & Cyber Liability

Risk Strategies’ data and cyber liability coverage can include the following:

  • Security breach notification and remediation expenses
  • Crisis management service expenses
  • Business interruption and additional expenses
  • Extortion expenses
  • Computer program and electronic data restoration expenses
  • Computer fraud
  • Funds transfer fraud
  • Telecommunications theft
  • Technology errors & omissions liability
  • Network & information security liability
  • Communications & media liability
  • Employed legal professional liability
  • Expense reimbursement

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