Our last post focused on the importance of developing a niche market, or rather a group of potential customers who share common traits. MGAs must stand out from their competitors, and by only offering general business lines or personal lines, they are not always able to do so. Midwestern Insurance Alliance (MIA) is an example of an MGA that offers products to a niche market; by being involved in underwriting and claims management of Workers’ Compensation Business for over 30 years.
Serving as a mandatory state-based social insurance program, Workers’ Compensation provides employees with financial protection against a disability or death that occurs while at work, or resulting from their work duties. Coverage is elective in some states, however most states require that business owners accept Workers’ Compensation Law provisions and provide the specified benefits.
Workers’ Compensation coverage includes four different types of benefits; medical, disability, survivor’s, and rehabilitation. Without these coverages, employees would be more likely to take legal action against their employers if they’ve been injured or made ill while on the job. Before Workers’ Compensation was an available insurance coverage, this system that made it difficult for employees to obtain compensation for such injuries, however exposed their employers to financially devastating financial penalties under tort law.
What should employers know about Workers’ Compensation coverage? The following is a brief overview of the factors, offered by the American Institute of CPAs, your clients should be aware of:
- They are 100% responsible for providing the coverage to their employees.
- Their state mandates how much coverage they will need to buy, which employee classifications must be covered, and what percentage of an employee’s salary the employer will pay if the employee misses work due to a job-related injury.
- All employees, volunteers, and vendors must be covered; each state excludes certain employee classifications.
- Select off-site accidents are covered by Workers’ Compensation policies.
- Injured employees have the right to file a claim for their benefits.
The staff members at Midwestern Insurance Alliance are experts in providing Workers’ Compensation coverage, and view their relationship with policyholders as a partnership. To learn more, please contact MIA today.
K2 Insurance Services, LLC was formed by two insurance industry veterans with the purpose of acquiring managing general agents and developing multi-line programs. Our goal is to distribute innovative products through retail and wholesale distribution channels. To learn more about our services and partners, please contact us today at (855) 976-8113 or visit K2INS.COM