Posts Tagged ‘disability insurance’

I recently quoted some workers compensation insurance for a business owner in Oakland County Michigan that only had a few employees. After getting the quote back he decided that he wanted to exclude himself from the Workers Compensation benefits. Now this is a very common exclusion to put on, especially in certain industries where the insurance cost can be quite severe.  But you need to be sure you have medical insurance and disability insurance elsewhere so you don’t leave any gaps in coverage.  Since he had medical coverage through his wife’s medical insurance plan at work we began a discussion on whether he would be ok financially if he did not receive an income from the business. He said he would be ok financially if he went without a pay check for 90 days. So we quoted him some disability insurance with a 90 day waiting period (or as the call it in the industry, elimination period). Now the price to get the disability insurance was about 25% of the cost to get the Workers Compensation Insurance AND disability covers him if he got hurt on the job or off the job.

So a couple things to think about when excluding yourself from Workers Compensation Insurance.

• Do you have health insurance coverage?
• Do you have short term or long term disability insurance?
• Is the cost for Workers Compensation greater than the cost of disability insurance?

The best advice is to talk to an independent insurance agent that not only specializes in business insurance but also can help you with your health insurance, disability insurance and life insurance needs.

Bryan Cranson is the owner of Cranson Insurance Agency specializing in business insurance quotes, workers compensation insurance quotes, health insurance quotes, disability insurance quotes and life insurance quotes in Oakland County, Washtenaw County, Kent County, Cook County and Wayne County, plus the entire states of Michigan, California, Illinois, Indiana, Ohio, Oklahoma and Missouri.