Keep Away From Workers Comp Annoyances
Several small business owners are amazed at the amount of maintenance involved with sustaining workers' comp coverage. Annual renewals, estimating payroll, and adding employees to your policies are all potential minefields where one misstep can have disastrous consequences. Listed below are the top five "gotchas" to take into consideration in terms of workers' comp insurance:
1. Be familiar with your state's penalties. Certain states levy heavy fines if your employees work there but you don't keep them covered by workers' comp insurance. For instance, in New York, you can be fined up to $50,000 for just one uncovered employee. If your company is based next door in New Jersey, you may think you're exempt from these penalties. But if one of your traveling employees is working in New York, you're still be subject to the fine, so it is recommended to ensure that your New York-based employee is insured. New York isn't the only state that has such stiff penalties, so be sure you know the laws in every state where you do business.
2. Set aside premium to the states in which you have employees. Even if your employee only works a couple of months out of the year in another state and the rest of the year close to home, you need to be sure that he is covered in both states. Check to be sure that your workman's comp policy has an all-states endorsement. This endorsement makes certain that your employees are covered in all states equally, even if you neglect to notify the carrier on a timely basis that you have a new employee or business in a new state.
3. Report new employees. When covering your employees with a workers' comp policy, ensure you separate your payroll by the states in which they work, and immediately report any new hires to your insurer. For example, if your business is located in California and you hire a worker to work in Oregon, but you don't add that employee and state to your workers' compensation policy, he may be covered for any injury claims temporarily under an all-states endorsement - but he won't be covered the next time your policy is renewed.
4. Estimate carefully. Workers' comp policies are based on estimates of payroll. Even if you don't have a crystal ball, take time to create a careful estimate of your payroll for the coming 12 months, in your home state and also any states where you think you will be conducting business. At the conclusion of the policy term, your insurer will send you an audit statement and ask for your state-filed payroll documents. They'll compare your actual divided payroll to your estimate, and you could receive either a refund or a bill for extra premium.
5. Always respond to your insurer's audit requests. If you don't, the insurance company will assume your company is continuing to grow and will automatically apply an estimated increase in payroll that may or may not reflect reality. Of course, which means higher workers' comp rates for you.
1. Be familiar with your state's penalties. Certain states levy heavy fines if your employees work there but you don't keep them covered by workers' comp insurance. For instance, in New York, you can be fined up to $50,000 for just one uncovered employee. If your company is based next door in New Jersey, you may think you're exempt from these penalties. But if one of your traveling employees is working in New York, you're still be subject to the fine, so it is recommended to ensure that your New York-based employee is insured. New York isn't the only state that has such stiff penalties, so be sure you know the laws in every state where you do business.
2. Set aside premium to the states in which you have employees. Even if your employee only works a couple of months out of the year in another state and the rest of the year close to home, you need to be sure that he is covered in both states. Check to be sure that your workman's comp policy has an all-states endorsement. This endorsement makes certain that your employees are covered in all states equally, even if you neglect to notify the carrier on a timely basis that you have a new employee or business in a new state.
3. Report new employees. When covering your employees with a workers' comp policy, ensure you separate your payroll by the states in which they work, and immediately report any new hires to your insurer. For example, if your business is located in California and you hire a worker to work in Oregon, but you don't add that employee and state to your workers' compensation policy, he may be covered for any injury claims temporarily under an all-states endorsement - but he won't be covered the next time your policy is renewed.
4. Estimate carefully. Workers' comp policies are based on estimates of payroll. Even if you don't have a crystal ball, take time to create a careful estimate of your payroll for the coming 12 months, in your home state and also any states where you think you will be conducting business. At the conclusion of the policy term, your insurer will send you an audit statement and ask for your state-filed payroll documents. They'll compare your actual divided payroll to your estimate, and you could receive either a refund or a bill for extra premium.
5. Always respond to your insurer's audit requests. If you don't, the insurance company will assume your company is continuing to grow and will automatically apply an estimated increase in payroll that may or may not reflect reality. Of course, which means higher workers' comp rates for you.
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Well I hope I have help point you in the right direction for your business and your needs for GA Workers Comp Insurance or GA Workers Compensation.
Keep Away From Workers Comp Annoyances
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