Trade associations work hard to bring about positive change in their industry. However, like other organizations, they do have some exposure to risk, particularly when it comes to their employees. Trade association insurance is a great way to prepare for unforeseen events, and a workers compensation protection policy is a crucial element of any trade association’s insurance package.
An association that has at least one employee will typically be required by its state to carry workers’ compensation insurance. This is a type of no-fault policy that offers protection for the trade association and its employees. Should an employee suffer from a workplace accident, illness, or injury, the policy would help cover the costs of their medical expenses, partial lost wages, hospital visits, and any job retraining that is needed. It can also help to protect the trade association against lawsuits pertaining to employee-related injuries.
Which Trade Associations Need Workers’ Compensation Insurance?
Most trade associations are required to have this type of insurance, although the minimum number of employees needed to activate this requirement may vary by state. According to the Virginia Workers’ Compensation Commission, businesses that have more than two employees are required to carry workers’ compensation coverage, and this extends to trade associations.
The definition of employees when it comes to workers compensation protection is a broad one that includes temporary, seasonal and part-time workers, trainees, working family members, minors, and immigrants.
It is important to note that in states such as Virginia, all employers that are subject to the requirement for this insurance are also obligated to post a workers’ compensation notice to show their compliance with the act. (1)
What Does Workers’ Compensation Protection Insurance Cover?
The specific components that are covered by workers’ compensation insurance vary by state, but many states operate in a similar manner. In Virginia, for example, workers’ compensation insurance provides benefits to employees who are hurt or sick because of their job. Virginia workers’ compensation insurance can provide coverage in the following situations.
Accidents Or Injuries Sustained During Work
Workers compensation protection can pay for the medical expenses of a worker who is injured in a job-related accident.
Illness
Also known as an occupational disease, an illness that is caused by an employee’s working conditions will be covered by workers’ compensation insurance. For example, if a worker is exposed to harmful allergens or chemicals and becomes ill as a result of working for a trade association, workers’ compensation could provide coverage.
Disability
This insurance may cover disability payments should a work-related illness or injury cause an employee to become temporarily or permanently disabled.
Ongoing Medical Treatment
Workers’ compensation insurance covers ongoing medical treatments, such as physical therapy that is needed for an employee to recover from a work-related illness or injury.
Death Benefits
In the event that an employee loses their life in a work accident, workers’ compensation insurance could help to pay for their funeral.
Wage Losses
If an employee is unable to work due to a work-related illness or injury, workers compensation protection insurance can cover the wages they lose during their recovery period. This allows the trade association to pay for temporary help without having to cover two employee’s wages simultaneously or leaving a valuable employee who is out due to an injury without pay.
Repetitive Injuries
People employed by a trade association who develop a repetitive injury can benefit from workers’ compensation coverage. These injuries often take time to develop, such as carpal tunnel syndrome.
Employer’s Liability
A workers’ compensation policy protects trade associations if they are found liable for an employee’s work-related injury. This can protect the association against a domino effect of liability or a negligence lawsuit.
Other Types Of Insurance Policies That Are Useful For Trade Associations
Workers’ compensation insurance may be required for most trade associations, but it is not the only type of policy that these organizations should have in place. Here is a brief overview of some of the other types of insurance that can give trade associations well-rounded coverage.
Professional Liability
Professional liability insurance, or errors and omissions coverage, can protect a trade association against financial losses stemming from negligence, errors, and malpractice.
Directors & Officers Insurance
A D&O policy can protect trade associations’ directors, officers, staff, and committee members from claims that allege a wrongful act took place as they performed their duties for the association.
General Liability
A general liability policy offers trade associations protection against any third-party claims related to property damage, bodily injury, advertising mistakes, and copyright infringement.
Property Insurance
This first-party policy covers a trade association for damage to its physical assets, such as equipment, buildings, and furniture.
Reach Out To The Trade Association Brokerage For Workers Compensation Protection
Get in touch with the experienced commercial insurance brokers at CI Solutions to find out more about obtaining commercial insurance policies that can safeguard a trade association against a variety of risks.