You know those guys that hang around Home Depot looking to get hired for the day? Let’s call them day laborers. As an employer, you may have seen day laborers and thought about using them. Running the numbers, it might make sense for your business because day laborers are available and inexpensive. I want to let you know, however, that using day laborers will most likely get you cancelled or non-renewed with your workers comp insurer.
Experience Modifications are powerful. They can help or handicap your business in a big way. I’ve seen businesses go out of business because of a surprise massive Experience Modification. I’ve seen a workers comp premium go from $20,000 to $75,000 all because of an Experience Modification increase.
What is your payroll going to be for the next 12 months? Does this question create a sense of anxiety emanating from deep within your soul? As your insurance agent/therapist, I would like to ask if you could take a moment to identify the root cause of this fear and trembling. Go ahead and lay down. My couch is right by my desk.
In California, the State Compensation Insurance Fund aka “State Fund” exists as a market of last resort. That means that if you can’t find insurance anywhere among the vast array of insurance companies licensed to do business in CA, don’t worry – you can always go to State Fund.
Ah, the mysterious and elusive Workers Comp. It’s the simplest of insurance products to understand: it pays for workers who are injured on the job. But it’s also complex. For example: how do you do classify an employee that performs two or more distinct types of duties?
Caves have been a part of human existence ever since the beginning. Our Neanderthal ancestors lived in them and drew pictures in them. Today, bomb shelters aside, we mainly use them for more recreational purposes.
Third Party Administrators. What are they? If you’ve had a workers comp claim, you might have dealt with one. They are outsourced claims adjusters. Workers comp insurers use them when they don’t handle the claims themselves.
Why is my workers comp so expensive? This is one of the most FAQ of all the FAQs. The truth is, there are a lot of factors going into your workers comp that make up the cost. I will now try to explain.
I’ve written about the Prior Works Exclusion and how it can be a black hole of non-coverage for a contractor. Yes, it’s pretty bad. What I want to write about today is a few more of the nasty endorsements that can eliminate coverage from your Commercial General Liability policy. These endorsements typically – if not exclusively – apply to contractors’ policies.
Note: if you want to read the updated version for 2017, click here.
I frequently get asked the question about who can be excluded on a Workers Comp policy. Once we get past the lies, myths, and rumors that are addressed in this post, we’re left with the owners and officers. It’s assumed that they can always be excluded, but I’m here to tell you that sometimes they can’t. Yes, it’s true. I’ll explain….