Common reasons not to have Workers Comp for farm employees include thinking the cost will be too expensive, not understanding the program, or assuming ‘employer’s liability’ provides adequate coverage. Or perhaps no one has ever explained the risks, the need for coverage, or the benefits.
Well here’s something to think about— If you are a farmer and you have employees, especially if you employ your relatives, it is definitely worth considering North Dakota Workers Comp. Farm employment is dangerous and Workers Comp is an absolute ‘no-fault’ medical, death, disability, and rehab coverage program. There are virtually no policy lifetime limits.
With “employer’s liability” negligence is required. The farmer’s employee has to prove negligence against the farmer/employer before the Farm Liability coverage triggers. Then it is limited AND the insurance company retains subrogation rights. The farmer/employer could find himself in court as the relative, relative’s attorney, health carrier or other party could bring a negligence suit.
However, Workers Comp is a no-fault system. In other words, the employed relative does not have to sue, prove negligence or win in court before coverage triggers as is the case with Farm Employer’s Liability. Another reason to have North Dakota Workers Comp on farm employees is that most farmers are independent businesses and do not provide employee health insurance. With Workers Comp, at least the on-the-farm injuries are covered, which is pretty broad at a very reasonable premium.
The bottom line: all farm employees are important, valuable and key to successful farming today. And on the personal side, any farmer who employs relatives ought to consider Workers Comp to protect the future of the family and estate.