What to look for when deciding on a Workers Compensation policy. It is required by state law to provide workers compensation coverage for employees. There are a few options to be aware of when reviewing your policy/quote.
One of the most important items to be aware of is that the states that your firm have locations in must be listed on the policy. With the exception of the monopolistic states (ND, OH, WA, WY) that have their own state run policies.
Another section to review is the limits under the employer’s liability insurance. In Colorado the statute limits are $100,000 by accident, $500,000 policy limit and $100,000 by disease. This limit requirement will vary by state. Different limits may also be required by contract requirements.
Verify that the job descriptions and salaries are in line with what your firm currently has. Because job descriptions and salaries do change over the course of the year, the carriers will send out audit paperwork after the policy has expired to verify that the amounts and descriptions are accurate.
There may also be the option to exclude officers from the Workers Compensation policy. This will require a signature when setting up the initial policy to verify that indeed these are the officers of the firm. The officers salaries and job descriptions will not be included in the total on the policy.
An optional coverage that may be available is a blanket or scheduled waiver of subrogation endorsement. This option will depend on your firm and the availability with the insurance carrier.
Deductible may also be available depending on the state and the size of your firm. Be sure you ask if your firm is eligible for a deductible and what the change in premium would be with adding a deductible.
Reading your policy is the best way to understand what is and isn’t covered under your Workers Compensation policy. Please call or email your PUI Agent with questions on the policy.