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Workers Compensation
There are steps you can take to improve workplace safety. However, if employees are injured, suffer from an illness, or even die due to their job, workers compensation provides coverage for expenses, lost wages, and rehabilitation services. This is different than a traditional insurance policy, and we can help you manage the cost of work-related injuries.
Workers compensation is not identical in all states. What is covered, what is considered necessary and appropriate treatment, which illnesses and occupational diseases are covered, are determined by each state. Contacting us if your employees are working in a state where your business is not domiciled is important.
Workers Compensation FAQs
I am the business owner. Must I include myself in the workers compensation policy?
No. The workers compensation policy is only for employees. Business owners may purchase a disability policy that provides similar coverage should they be injured or ill and unable to work.
If your business is an LLC, the owners are automatically included and need to sign an officer exclusion form to be removed from the workers compensation.
If your business is a corporation, consult with us to cover the executives.
Sometimes my employees work out of state. Does coverage extend to other states?
It depends. Factors may include policy endorsements, the state where you are working, and the state where the insurance company is domiciled. If you are working out-of-state, consult with us to ensure you have proper coverage.
My payroll is very different now compared to when my policy started or was last renewed. Can I adjust the estimated payroll in the middle of the policy term?
Yes. If the insurance company allows, it’s recommended to adjust the estimated payroll mid-term to avoid a large audit at the end of the policy period.
I am a sole proprietor. Can I purchase a workers compensation policy?
Yes. There are times when subcontractors are required by contract to have a workers compensation policy, even if they do not have employees. This is to protect the contractor, so that if injuries occur on the job site, the contractor does not have to provide coverage. We have insurance carriers that offer workers compensation policies to sole proprietors.
Is there a waiting period for new hires to be covered by a Workers Compensation policy?
No. Coverage for an employee begins as soon as their employment begins.
If your payroll drastically fluctuates because of new hires or terminations, you may want to adjust your annual estimated payroll mid-term to avoid a large audit at the end of the policy period.
My annual payroll will be less than the estimated payroll listed on my workers compensation policy. Will the insurance carrier give a refund?
Yes. You will only be charged the premium for the actual payroll. Once the audit is completed, any unused premium for estimated payroll higher than the actual amount will be refunded to you.
At FIFS, we are dedicated to working with businesses to improve the overall health of your company using strategies to manage risk, control utilization, and ultimately improve your bottom line. Learn more about FIFS Employer Advantage.
