A/E Firm’s Workers Compensation Policy

 

What should my architecture/engineering firm consider when looking at a Workers Compensation policy? The Workers Compensation policy is fairly straightforward as far as options, but there are a few items to think about.

The limits on the policy are one area to review.  The minimum limit on the policy is $100,000 each accident/$500,000 policy limit/$100,000 each employee.  However, your firm may want to consider higher limits if you have a larger firm or have contract requirements that are for larger amounts.  Additionally, the Workers Compensation policy has a maximum limit you may be able to add an umbrella policy that includes the Workers Compensation policy under the umbrella.

Your firm does have the option to add a deductible to the policy.  The deductible does not provide a large savings but it is a savings none the less.   Common deductible amounts are $500, $1,000, $1,500, $2,000, $2,500 and $5,000.  There may be larger deductible options for large firms, check with your insurance company on deductible options.

There are designated medical provider programs available.  If your firm selects a designated medical provider the insurance company will provide an additional credit on your policy.  This credit will vary with each insurance company.

Be sure to notify your insurance company if you have employees in different states.  Those states and addresses will need to be included in the policy as well the salaries associated with that state.  If you have employees that work in monopolistic states, North Dakota, Ohio, Washington and Wyoming, your firm will need to get separate policies for those states.  Each of these states has their own state program.

There are several things to consider when reviewing a Workers Compensation policy.  If you have questions please call or email your Professional Underwriters agent.