Workers Compensation for Design Professionals

Who is InsuredWorkers Compensation for Design Professionals, when reviewing your policy there are a few items that your firm should be paying attention to in addition to the conditions, limitations and exclusions.

Class codes – This is a code that indicates what each employee’s job description is at the firm.  So for example, an architect class code is 8601 and clerical staff is 8603.  This code determines a rating basis for employees.

Remuneration (salaries) – For insurance companies, salaries is another basis, along with the class code, for a Workers Compensation policy.  These are the estimated salaries of employees within each class code.

States – The States that your firm is working in will be listed in the States section.  With the exception of North Dakota, Ohio, Washington and Wyoming, which are monopolistic States and have their own State Workers Compensation policy.

Owners Included/Excluded – In Colorado it is not a requirement that owners are included on the Workers Compensation policy.  If the owners are included the payroll amounts used are as follows: 2016 – $52,300 and 2017 – $53,700.  If owners are excluded that will be indicated on the policy by endorsement.

Deductible – Your firm may have the option to add a deductible to your Workers Compensation policy.  This deductible will come in varying amounts depending on the carrier but could be from $500-$15,000.  There is some savings to the premium when a deductible is added.

Audit – Workers Compensation policies, at renewal, are estimates of the salaries of employees.  At the end of the policy period your firm will be asked to completed audit paperwork.  The reason for the request is to acquire the actual salaries from the past policy period.  The actual salaries may be higher or lower than what was estimated on the renewal.  It is important your firm completes the audit paperwork.  What records will be needed when completing the audit?  State and Federal Tax Reports, journals, ledgers, checkbooks and contracts may be some of the records your firm will be asked for.  Also, be sure to keep up to date on certificates of insurance for all sub-consultants.

Workers Compensation is an important insurance coverage for your business. Please call or email your PUI Agent to assist with the policies or to answer any questions.

Previous Post
Cyber Coverage In Depth – Third Party
Next Post
New Cyber Threat ’10 Concerts’ meme