Why You Need Workers Compensation Insurance

Through our experience with workers’ compensation insurance we often hear of different claims, everything from slips and falls to more intense and fatal incidents. Research shows that agriculture is one of the most dangerous industries to work in, in 2017 alone there were over 5,000 fatal occupational injuries among the agriculture industry. Federal Labor Laws require employers to provide a safe place to work but sometimes on the job accidents can’t be avoided. 

With workers’ compensation coverage offered through a full service company like Agri-Services Agency, risk management and loss control services are available and can help mitigate some of these risks. Employers who lose and employee to injury also loses that employee’s production. Workers Compensation not only covers employees it also protects the employer from the financial burdens associated with an on the job accident.

There are other options in the states that do not require worker’s compensation insurance. These options do not comprehensively protect the employer or employee as well as Workers Compensation Insurance does. Due to the Insurance Services Office, Inc., endorsement FL 04 65 04 16, companies in these states could still be required to pay out in the event that an employee was injured in the following situations:

1. Farm Employers' Liability. This coverage states that it will respond when the insured is "legally obligated to pay as damages because of bodily injury to which the insurance applies." The injured employee must have been working for the insured at an insured location used for farming purposes. The key thing to remember here is that the farm employer would need to be legally liable for this coverage to apply. No legal liability? No payment due.
2. Farm Employees' Medical Payments. This coverage states that the insurer will pay "all reasonable medical expenses to which the insurance applies" for injury to a farm employee who sustains injury caused by an accident. Again, the injured employee must have been working for the insured at an insured location used for farming purposes. This section provides coverage regardless of fault and will pay for reasonable medical expenses incurred within 3 years of the date of the accident. There is also an option to include coverage for occurrences that involve motor vehicles, autos, or watercraft.

Here is a good break down of the differences between purchasing workers’ compensation insurance vs employer’s liability.
 

	Workers’ Compensation Insurance	Employer’s Liability
Pays Medical Expense	Yes	Yes
Pays Lost Wages	Yes	Yes
Limited to $1,000,000 per year	Yes	Yes
Unlimited Medical Expenses	Yes	No
Unlimited Lost Wage Expense	Yes	No
Loss Control Specialist Visits & Training	Yes	No
Safe Farm Certification	Yes	No
Claims Mitigation & Service	Yes	No
Dividend Program	Yes	No
Deductible	No	Depends
Farm Out of Pocket Expense on Claims	No	Depends
Claims Filing Training	Yes	No

 
Whether your state has a statutory requirement or not, it is our experience, that workers’ compensation insurance provides a much better benefit for the cost.

The workers compensation program offered by Agri-Services Agency is designed specifically for those in the agriculture industry, the program covers the unique hazards that affect your business.  The ASA workers’ compensation insurance program is offered by agricultural specialists and backed by an AM Best A++ rated national insurance carrier.  In addition, we provide farm safety and loss control services as well as claim management services for our customers to minimize risks and help you when an accident does arise.

Agri-Services Agency understands your agriculture insurance needs, we have helped thousands of farmers and agricultural business owners with their workers’ compensation insurance coverage. To find out how we can help, give us a call today at 1-877-466-9089.