Do I really have to carry Coverage?
The answer to this question (like many things in life) is, ‘it depends’. Depending upon the state you operate in, the way your business is structured, the number of employees who have, and a number of other factors; there may be exclusions to allow your business not to carry workers compensation insurance. If you are looking for Workers Compensation Utah, it may impact your business dramatically different than if you are looking for Workers Compensation Insurance NY. The differences in coverage may be equally different if you operate a business in the Home Health Care compared to a Landscaping Company. No matter what the specifics of your businesses situation, it is usually best for your business to carry coverage in some form or fashion.
Should I carry Coverage anyway?
In most cases, yes. It is almost always in your businesses best interest to carry some form of workers compensation insurance. Even if your business is not legally required to carry coverage, if you have employees your business is liable for injuries that occur as a part of normal business operations. Workers Compensation may seem expensive when purchasing coverage every year, but it is much less than paying for the medical expenses, lost wages, legal fees, and any damages awarded in a court of law. Workers Compensation Insurance can help cover some or all of these costs. An independent insurance agent can help you understand the risks your business faces when you are Buying Workers Comp Insurance.
Are you sure I am classified properly for Buying Workers Comp?
Many businesses do not have some or all of their employees classified properly. This can cause your business to pay more or less for workers compensation coverage. Some employees may be classified properly depending upon the activities they partake in on a daily basis. Office employees are not as risky as employees who use dangerous power tools at height. Because of all of these differences, it is important to work with your insurance agent to make sure your business is listed in the proper Workers Compensation Class Codes.
What if I use 1099 Independent Contractors?
Using 1099 Subcontracting is generally a very grey area with most contractors. It does not have to be. Your insurance agent should help you determine if you should use 1099 or W2 employees. They also can help you determine if your contractors are actually employees to the letter of the law. Many business owners think they are using contractors when in reality the workers are considered employees in a court of law. If they are considered employees your business is required to cover them under the workers’ compensation system. The best way to determine how your employees are classified in the eyes of the law is by checking with your state governing body and by partnering with an independent insurance agent when Buying Workers Comp Insurance.
Do you have any flexible payment options for businesses looking at Buying Workers Comp Insurance ?
Flexible payment options are one of the most exciting aspects of the past decade for small businesses looking to buy Pay as You Go Workers Compensation Insurance. Pay as You Go is an alternative payment option that allows businesses to get coverage in place at a significantly less initial cost. A traditional policy requires a lump sum payment at the front of the term to get coverage in place. This amount is typically between 25 and 33 percent of the total annual premium. For seasonal and cash strapped businesses, this may be a significant amount of cash to come up. Additionally, a Pay as You Go Workers Comp Policy can help you pay your monthly payments more accurately and avoid most mid term audits. Your insurance agent should be able to help you determine if Pay as You Go Workers Compensation Insurance is right for your Small Business.
What is the Reputation of the Insurance Carrier?
The reputation of the Insurance Carrier is important to the entire process of workers compensation and commercial insurance overall. It is not wise to only buy insurance on price. Insurance is like many things in both business and in life, you get what you pay for. If one carrier is offering you a price dramatically different than all other insurance carriers you will more than likely find out why it is lower when you have to file a claim. Partnering with an independent agent is the best way to get unbiased information about each individual carrier. They can tell you why one carrier is lower or higher in price than their competitors. They can also explain if one policy offers more coverage that you may not realize you need or whether there is an exclusion that can cause a headache when you have to file a claim. This is information that is precious when a business owner is looking in to Buying Workers Comp Insurance
Is there automatic coverage for work in other states?
Some businesses have employees who do their job in more than one state. This is common in cities that border two states or for businesses that provide services for businesses in multiple states. If you do work outside of your primary state, it is crucial to determine if your policy will extend to the other state. Most states allow injured employees to file a workers compensation claim in the state they were injured in. Other states require the injured employee to file in the state they reside. In most court rooms, judges will follow the Walsh Test to determine which state has jurisdiction when an employee is injured in an accident that involves multiple states. WALSH is an acronym that includes: Worked, Accident, Lived, Salaried, Hired.
I have a few claims the past few years. Is that going to impact what I pay in Premium?
Your track record is important to an insurance carrier. No carrier wants to stake their reputation on offering coverage to a business with a history of frequent or severe claims. The “experience modification rating” is the number one aspect carriers use to determine if they are going to offer coverage and also what they are going to charge for that coverage. The good thing is this rating is something the business has some control over. Implementing a safety program and an effective return to work program will allow the business to lower the frequency of claims and the time injured workers stay off the job. This can positively impact your claims history and correlate to a lower insurance premium. No matter what your past claims history is, it is always important to be honest with your agent when they ask you about past claims. There is a paper trail they will have to check before quoting coverage. If you as a business owner are not forth coming about your claims history, it can make for an uncomfortable conversation for all involved when the information gets to the insurance carrier. In the worst case scenario, it can cause a claim to not be covered.
How can I prepare for an Audit when Buying Workers Comp Insurance ?
The workers compensation audit process can be stressful and frightening proposition, especially for new business owners. Your independent insurance agent should be able to help you prepare for this process. An Audit will take place towards the end of the term. This will check to see what employees are doing what jobs and in what amounts. Depending upon the accuracy of the projections at the end of the term and whether or not you went with the Pay as You Go Option the audit may result in either a credit to your business. In some cases it results in your business owing additional premium. Preparing for this scenario in advance is the best way to be positioned for the unexpected.
How do I get started?
If you get adequate answers to most of these questions, you know you are with an agent you can trust and it is time for you to begin Buying Workers Comp Insurance. The best way to proceed at this point is to call 888-611-7467 or click here to begin a quote with Workers Compensation Shop. When you are ready to start a quote, here is a list of items the agent will need before they can get you the most accurate quote.