Non-Subscription to Workers Compensation
As discussed in the description for Statutory Workers Compensation Insurance. Subscription to Workers Compensation is voluntary. This was established in 1913 but it was the mid 70’s that any actual insurance products were created when the cost of workers compensation premiums became a crisis for most businesses. At first companies could only purchase occupational accident to cover the employee’s medical needs, wage replacement benefits and a compensation plan for death & dismemberment (Part A). This left companies in peril for any litigation and liability to pay judgements. Now these programs have become far more sophisticated and in fact cover not only Part A but now include Employers Liability coverage (Part B). As these non-subscriber products have evolved so has the rates for Workers Compensation Insurance mostly downward in cost. One can reasonably assume that were it not for the lessor expensive alternative to Workers Compensation, the rates would not have come down. Not all classes or types of businesses should be a Non-Subscriber to Workers Compensation. Additionally, there are certain defenses that are not allowed by law in defending a company against claims of negligence. Those three things are as follows: Employee’s acts contributing to incident, Fellow Servant act caused the incident and assumed risk. We at Employers Risk Insurance can evaluate a business using our thirty years of experience to determine whether or not this option is reasonable or prudent.