Can Workers' Compensation Protect Employees from Covid-19?

​Employees that did not receive leave due to the plummeting economy continue to work. While others can work remotely, there are still those in the medical field, and the hotel and restaurant industry going out every day. These employees risk contracting the virus at work.

Higher Insurance Premiums
The coverage for workers' compensation is expensive in several states. Insurance carriers are allowed by The Executive Order to have their policy costs adjusted. Unfortunately, there will most likely be an increase in workers' compensation premiums for the additional benefits offered with claims related to the coronavirus.

Overloading Existing State Systems
Some states have a system for workers' compensation insurance similar to how the federal CARES Act accommodates the systems for state unemployment insurance that offers employees relief through upgraded advantages in unemployment insurance.

Those with no jobs at hand can benefit from state unemployment insurance, while employees who get injured or sick at work get coverage from workers' compensation insurance. There have been various struggles of state unemployment systems, and whether workers' compensation premiums offer better outcomes are still yet to be seen.

Discouraging Businesses from Making Employees Work
Numerous employees from significant businesses are still going about their jobs until now, and some states are currently in the process of reopening other small businesses. The Department of Public Health from several states issued a memorandum to governments in the county that sets the criteria of opening to Stage 2, with the necessary guidance, of course.

However, the employee claims for workers' compensation related to Covid-19 may further discourage most businesses from allowing the employees to return to work until the rebuttable presumption. The coverage does not currently apply to those working at home. It is a consequence unforeseen by an Executive Order that wants to provide the necessary help to their employees.

Protection in Civil Lawsuits
Workers' compensation insurance can offer protection to those employees in civil lawsuits with claims related to Covid-19. The workers' compensation exclusivity doctrine may bar civil lawsuits of wrongful and negligence that claim it was because of the employer's unsafe work practices for the employee's contraction of the virus.

The added civil lawsuit protection might seem small compared to the increasing coverage costs. Although it might not offer business immunity or a shield for public liability, it still provides a path for employees to avoid civil damages for the pandemic.

At Cornerstone Insurance Agency, we do our best in making sure that our clients are well-protected with affordable and comprehensive policies. We make sure to go the extra mile to help you with your needs. To learn more about how we can help you, please contact our agency at (888) 661-8831 or Click Here to request a free quote.