Worker's Compensation Insurance for Veterinarians

Worker's Compensation

Protect employee injury and recovery while insulating your business from ruinous liability

Most states require businesses to have workers compensation insurance. This system exists so injured workers receive benefits without proving employer negligence, while employers are protected from costly, unpredictable lawsuits.

What all does Worker's Compensation cover?

Worker's Compensation provides your employees benefits if they suffer a work-related injury or illness. These benefits can help:

Cover medical care for a work-related injury or illness (urgent care, ER, rehabilitation, etc.)
Replace lost wages if recovery and returning to work takes time (>7 consecutive days)
Provide disability benefits
Provide funeral expenses if they were to die while working

How does Worker's Compensation Insurance work?

When a workplace injury occurs, employees need to be able to trust their employer to make the right decisions. As an employer, you need to be able to provide valuable and convenient information that offers quick treatment and guidance, further establishing trust, should an employee injury occur.

The first step is knowing if your worker's compensation insurer provides services such as Nurse Triage. Insurers who offer this service provide their policyholders with a 24/7/365 first point of contact that provides an immediate consult for your injured employee with a registered nurse. This can be very valuable as an injured employee may not be sure where to turn to for immediate help. If you operate an emergency or after-hours veterinary hospital, employees may be forced to visit an emergency room. The consequences of these scenarios can include:

Under-treatment
Over-treatment
Unnecessary costs
Employees who don't follow a treatment plan
Strained employee/employer relationship

However, if an injured employee needs to seek immediate medical care, worker's compensation is designed to pay for the medical bills associated with the injury. In fact, worker's compensation is designed to be virtually unlimited medical coverage for a work-related injury or illness. If you review your workers compensation policy, coverage for these expenses is coverage A of your policy which shows no limit. You may see limits of insurance listed in your policy, but that is Employers Liability which is explained below.

In most states, if an employee is injured or ill due to something work related, worker's compensation also provides lost wages after seven (7) consecutive days of lost work, until they can return to light or full duty. Lost wages are typically 60% of gross annual salary or average weekly wages.

Can a business owner participate in Worker's Compensation as well?

Yes, but you need to speak with an agent on how to include yourself or other owners/officers. Some states automatically include owners when the policy is written and require a signature to be excluded. Other states may exclude an officer automatically and require a signature to be included. Florida, for example, requires owners/officers to exclude themselves online with the Florida Department of Revenue and failure to do so could result in owners being included in coverage, any their wages included in any subsequent policy audits, even when their name(s) may have been listed as excluded on the policy. For those reasons, always discuss the role of owners/officers on your policy with your agent.

Does Vetinsure recommend an owner/officer to include themselves?

Yes. This is the easiest recommendation we could make. Some agents, especially your local one, that doesn't really know commercial insurance that well may recommend excluding yourself as a tool to save money and lower your premium. But never forget, worker's compensation insurance is virtually unlimited medical coverage, typically with no deductible. You are likely bending over examining animals all day, performing surgeries, going to CE, running errands, etc. There are plenty of opportunities to get hurt at work, injure your back, get in car accidents, etc.

What is Employers Liability?

This type of coverage, found in your worker's compensation policy, protects the business from financial loss if an employee sues for work-related injuries or illnesses not fully covered by worker's compensation. Usually included as "Part-Two" or "Coverage B" in worker's comp policies, it covers legal defense costs, court fees, and settlements. It is distinct from worker's comp, which covers medical expenses, and is essential in lawsuits involving employer negligence.

Some areas where Employer's Liability is used:

Consequential Bodily Injury
Loss of Consortium
Third-Party Over Actions
Dual-Capacity Suits

Consequential Bodily Injury

This type of legal action is when a member of the injured worker's family purports to have an injury that directly results from the injury to the employee. For example, a spouse of an injured employee is assisting the employee to the bathroom and injures their back while assisting them. Essentially, if a family member is injured as a direct result of your employee suffering a work-related injury, this type of litigation could generate. Mental injuries also can happen, but most are alleged and many states have narrowed the applicability of this type of lawsuit.

Loss of Consortium

These suits are a legal action often brought by the spouse of the injured worker that alleges the loss of spousal services including but not limited to companionship, help with household duties, and sexual relations.

Third-Party Over Actions

This type of litigation is where an injured employee, after collecting workers compensation benefits from an employer, sue a third party for contributing to the employee's injury. In a veterinary hospital, this could happen when an employee sues the manufacturer of faulty equipment. This can also be focused on a third-party service technician who improperly repaired the machine.

Dual-Capacity Suits

Dual capacity is the principle, defined in a number of court cases, is a legal exception allowing employees to sue their employer for work injuries in civil court, despite exclusive remedies for injury like workers compensation. It applies when the employer acts in a second, distinct role - such as a product manufacturer, property owner, or medical provider. This creates duties independent of the employer-employee relationship.