Workers’ Compensation and Employers’ Liability

What is Workers’ Compensation?

Workers’ compensation is a type of insurance that provides financial support to team members if they are injured or become ill due to their job. This coverage ensures that employees can access medical treatment and income replacement while recovering.

What does it cover?

• Medical expenses: Covers doctor visits, hospital stays, and treatments related to the injury or illness.
• Lost wages: Provides partial income if an injury or illness prevents you from working temporarily.
• Rehabilitation costs: Supports physical therapy or vocational training if needed for recovery.
• Death benefits: Offers financial assistance to dependents if the injury or illness results in death.

What is Employers’ Liability?

Employers’ liability insurance covers employers if they are held legally responsible for a workplace injury or illness that isn’t covered under workers’ compensation. While workers’ compensation is a no-fault system (employees receive benefits regardless of who caused the injury), employers’ liability steps in for legal claims.

What does it cover?

• Legal defense costs: Covers the cost of defending against lawsuits brought by team members or their families.
• Damages: Pays settlements or judgments if the employer is found liable.
• Third-party claims: Covers lawsuits from other entities related to a workplace injury or illness.

Why are these Insurances important?

1. For employees: Workers’ compensation ensures that team members receive the care and support they need after a workplace injury or illness.
2. For employers: Employers’ liability safeguards against significant financial losses from legal claims, helping to protect business operations.

How they work together

Workers’ compensation and employers’ liability often come bundled together as part of a comprehensive insurance policy. While workers’ compensation addresses the immediate needs of injured employees, employers’ liability provides an extra layer of protection for employers against legal claims.

Countries where we charge Workers’ Compensation and Employers’ Liability

The table below shows the countries where Remote currently charges for Workers' Compensation and Employers' Liability. This list will be updated as new countries are identified.

Frequently Asked Questions

Can I (the client) obtain the insurance policy myself?

• Legal Employer of Record: Remote is the legal employer on record, which means we are responsible for obtaining necessary insurance.
• Local Regulatory Requirements: Many countries prohibit "non-admitted" policies (insurance purchased outside the country). Locally administered policies are mandatory, and you must have a registered entity in the country to comply.
• Benefits of Remote’s Involvement: Remote can secure better rates and terms through established local operations, saving you time and money.

Why is this insurance charged only in certain countries?

In specific countries, local regulations require locally administered policies. Global policies cannot pay claims in these jurisdictions, so Remote must purchase separate local policies through licensed brokers. The additional cost reflects compliance with these regulations.

If Remote is the legal employer, why do I pay the premium?

Under Remote’s Terms of Service, clients cover employment-related costs, including insurance premiums. This protects both Remote and you, the client. For example, if a team member files a claim related to work they perform for your business, the insurance prevents direct liability from falling on you.

Can clients get a copy of the policy documents?

Due to confidentiality and data protection laws, full policy documents cannot be shared. These contain sensitive information specific to Remote and its operations. However, we can provide a Certificate of Insurance as proof of coverage, which can be shared with clients and team members as needed.