What is Workers Compensation? It is a separate and distinct coverage that provides benefits to your employees as a result of injury arising out of their employment. This coverage is not part of your General Liability or any other policy. You need a Workers Compensation policy.
Who must carry Workers Compensation? This varies by state, but even if you are not required to carry this coverage, you could still be responsible for an injury to an employee. You could also be responsible for injuries to a subcontractor and/or for his employees if he does not carry his own Workers Compensation coverage.
Who is covered by Workers Compensation?
Corporations - All employees and officers, if a “closed corporation” or LLC officers may elect to be excluded. (If included there are state minimums and caps on officers payroll.)
Partnerships & Sole Proprietors - All employees are included but the owners who are excluded unless they elect to be covered, which requires an endorsement to the policy adding coverage for them.
What does this coverage cost? The premiums are based on your payroll for the type(s) of work performed by your employees. There can be one or several different classes/rates on a single policy. Records must be maintained for each employee’s primary duties, without records the employee payroll will be assigned to the highest rated class. Payroll is provided on an estimated basis and an audit performed at the end of the term to determine the actual payroll and premiums.
This is intended only as a brief, general outline of Workers Compensation coverage. Since every business situation is different and state laws do differ, please contact our office so we can answer any questions you may have and to determine your particular needs.
To Find Out More, Give Us A Call at 240-695-5111, or Request a Quote