Like other employers, auto dealerships are required to provide workers’ compensation coverage to employees. This coverage takes care of the employee’s medical costs and sometimes provides for lost work time as well, depending on the injury and the coverage criteria for wage replacement in the policy. This insurance is distinctly different from employers’ liability coverage, which is usually also necessary, so it’s important you understand the basics while shopping for a complete solution to your workplace coverage.
1. Combined Liability and Workers’ Comp Is Out There
If your state does not use a monopolistic workers’ compensation scheme, you can find insurance that combines liability coverage with your state mandated policy. This coverage does have limits, but it takes care of the costs of litigation and negotiation in the event of an employee lawsuit relating to your liability for the injury. It also covers payouts for damages within those limits.
2. Separate Liability Policies Exist in Monopoly States
If you do live in a state with a mandated monopoly, you can still get liability coverage for lawsuits from the same providers that offer combined packages. Keep that in mind as you shop for auto dealership workers comp.
3. Cost Control Options Exist
Costs for auto dealership work comp insurance depend on your claim history and the risk profile your business presents after your employees’ experience and shop history are taken into account. If they seem a bit high, there are some cost responsive solutions out there. Just ask about them.