In many states, officers of companies can exclude themselves from workers compensation insurance coverage, but is it wise?
Business owners know the importance of providing workers compensation coverage for employees. In many cases, it is required by law and may be the sole recourse for employees seeking medical treatment for a job-related injury or illness. Officers of a corporation, however, may elect to exclude themselves from this coverage, often to save money and possibly due to an assumption that the officer has medical insurance that will cover any work-related injury.
But will it? The details of the health insurance policy are key to this issue.
With the ever-evolving health insurance marketplace and different state regulations across borders, one cannot assume there is coverage in place, especially if your officers sometimes step outside their normal course of duties.
Coordinate between your health insurance team and commercial insurance team to review the laws of your state and the coverage available under your specific insurance policies.
The last thing you would want is an executive to end up in the ER from a work-related issue and have coverage denied because you elected not to purchase workÂers compensation, only to find out there is a specific exclusion in your medical insurance regarding a work-related illness or injury.
