What makes this insurance so complicated?
If you are prepared, you’ll know what to expect. To apply, click this form
Few Slides about WC insurance
I am a sole proprietor/business partner/corporate officer/member of a limited liability company.
Do I have to buy w.c. insurance?
"The short answer is no, but the full answer is a bit longer. In summary, sole proprietors* and business partners may elect to come under the Act or they may choose not to.
There is a twist, though, in Section 3 of the Act. It provides that employees who engage in extra hazardous* occupations must be covered under the law--but then subsections 3(17) and 3(20) allow sole proprietors, corporate officers, business partners, and members of limited liability companies to opt out.
In summary, if you are a sole proprietor, business partner, corporate officer, or member of a limited liability company, and...
Do I need workers compensation insurance?
To protect employers from lawsuits resulting from workplace accidents and to provide medical care and compensation for lost income to employees hurt in workplace accidents, in almost every state, businesses are required to buy workers compensation insurance. Workers compensation insurance covers workers injured on the job, whether they're hurt on the workplace premises or elsewhere, or in auto accidents while on business. It also covers work-related illnesses.
Workers compensation provides payments to injured workers, without regard to who was at fault in the accident, for time lost from work and for medical and rehabilitation services. It also provides death benefits to surviving spouses and dependents.
Each state has different laws governing the amount and duration of lost income benefits, the provision of medical and rehabilitation services and how the system is administered. For example, in most states there are regulations that cover whether the worker or employer can choose the doctor who treats the injuries and how disputes about benefits are resolved.
Workers compensation insurance must be bought as a separate policy. Although in-home business and business owners policies (BOPs) are sold as package policies, they don't include coverage for workers' injuries.
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Information about Workers Compensation policy audit
Many from you will face or already have some experience with it and learning from experience is not what you want to happened to you.
Before audit, you may have in hand 2 or 3 tools to legally decrease the amount of premium you owe. When you were applying for coverage, you were billed on presumable pay roll. After 12 months, numbers could have dramatically changed based on how you paid for labor and subcontracted costs.
At a time of an application, please ask me about these tools. They have to be used far before the time of audit – during the policy year.
The following information how an audit is performed is from Barkley Assigned Risk Services:
What are the types of audits?
Preparing your for a "Mail Audit"
Note: If you are scheduled for a Physical Audit, the Mail Audit options listed above will not be available.
Preparing your for a "Physical Audit"
Supporting documentation for your legal status
For Legal Status of a Corporation
For Legal Status of a Partnership
For Legal Status of an Individual
For Legal Status of a Home Owners Association
If they don't have insurance, and you announced you paid them: YES, you created an obligation to pay the particular rate for the amount you paid to them.
If they have proper insurance, and they arn't directed from you on a day to day operations: NO, you should do NOT pay.