Workers' Compensation Catastrophe Cover

Workers' Compensation Catastrophe Cover

An insurance policy providing coverage for a self-insured employer in the event workers compensation claims rise above a certain amount. Employers who are not required to purchase workers comp insurance may elect simply to set money aside to pay for claims rather than buy a policy. Workers compensation catastrophe cover pays for claims if this money is insufficient to pay for a claim. An employer may pay a lower premium for catastrophe cover as it is fairly unlikely he will have to file a claim.