Most of the business owners around Lubbock I deal with exclude coverage for themselves and other owners in their workers’ compensation policy. It seems that many owners don’t like the idea of getting hurt or don’t believe that an accident will befall them.
Group Health Insurance Excludes Workplace Injuries
Perhaps some of them believe that if they get hurt, they will depend on health insurance to cover the bills. Well, that’s a problem. Almost all group health insurance plans exclude coverage for on the job injuries. Surprised? It’s almost always an exclusion, even on an expensive, comprehensive group insurance policy.
Now why would an on the job injury be excluded by your company’s health insurance? The answer is simple – if it’s not excluded, it’s covered. In other words, who would buy worker’s compensation, if accidents on the job were covered under group health insurance?
That is the purpose of worker’s compensation, to cover the gap of medical coverage and lawsuits of employees injured or killed while working. Group Health Insurance excludes coverage for any employee, whether owner, manager or secretary.
Scenarios for Owners & Managers to Be Injured
Even if you aren’t actively doing manual labor or engaged in work that could result in an injury, you are likely on the job site. Manage a construction firm? Putting on a hardhat is a good sign you could be involved in an accident while at work. In Texas, working in the oil industry is a common source of injury and death of both employees and owners.
However, the most common scenario for injury of an owner/manager is travel. Driving during work is more likely to lead to an accident than a work site. Whether you are driving a personal vehicle or company owned vehicle, traveling for work is a grey area that isn’t always covered by a commercial auto policy.
Consider Worker’s Compensation for Everyone
Worker’s Compensation can also cover lost earnings and productivity loss affected by an injury. As the owner or manager, you are not easily replaced. If you were to experience an injury, would your company still operate at the same level?
If you’re a Texas business owner and ready to learn more about worker’s compensation options, give us a call at 806-798-7800 or get a free quote.