Gas Station Workers Compensation Insurance

low cost gas station insurance

Gas Station Workers Compensation Insurance

Gas Station Workers Compensation Insurance

As the owner of a gas station, imagine this scenario for a moment: One of your employees has been tasked with emptying the trash containers near the gas pumps at your station. Your employee is very careful to watch for cars as she empties each bin, but just as she collects the last bag and heads for the dumpster, an inattentive customer speeds into your station from the road and accidentally clips your employee with their car. Your employee is not seriously injured, but will need to be taken to the hospital to be evaluated and treated for her minor injuries and then remain off duty for several days. What responsibility do you, the owner have, to this employee?

If you answered that you would be responsible for the woman’s medical bills and part of her wages because she was injured on the job, you may be correct. In most states across the nation, businesses of all sizes are required to carry worker’s compensation insurance to cover an employee’s medical bills and some of their wages in the case of injury on the job. In the event that an employee dies due to a work-related incident or illness, worker’s compensation insurance will cover burial expenses for the employee, as well as provide their surviving spouse and children with monetary benefits for a certain amount of time.

Owners of gas stations will need to spend some time researching their state’s requirements for carrying worker’s compensation insurance. Some states, like Ohio, Michigan, and California require that every employer carry worker’s compensation insurance to cover their employees, no matter how many individuals they employ. At the same time, there are states like Alabama which leave the decision regarding worker’s compensation insurance up to each individual employer. In between these two extremes are variations of the same theme- coverage requirements vary state to state depending on the type of business you have, how much profit your business nets each year, and how many employees you have.

What is the purpose of worker’s compensation, other than to provide assistance to incapacitated employees and their families? Beginning in the 1850s and continuing for over fifty years, many states passed legislation that allowed employees to sue their employers for negligence or omission of safety standards that led to injury. As time went by, states eventually began implementing worker’s compensation requirements. With these policies, employees gave up their right to sue their employers for negligence and receive monetary benefits, but they now were guaranteed medical coverage and some wage compensation. Worker’s compensation insurance eliminates the need for long, drawn out investigations and lawsuits that surround proving cases of negligence or omission.

Anyone who owns a gas station should already be up-to-date on all matters surrounding worker’s compensation requirements in their state. Employers who live in states requiring the coverage yet do not offer it may face severe financial penalties. Even employers who are not required by their state law to carry coverage would be wise to consider the investment, as it protects them against lawsuits in most cases of employee injury.

All information is general in nature and is intended to provide guidance only. It is up to you to request specific coverage options, the agency and agent do not bear this responsibility. Always read the policy if there is a questions about coverage or a claim. If any information herein should conflict with your actual policy’s specific language, the policy language will be controlling.

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