Georgia Workers Compensation Basics

In Georgia, every employer who has three or more employees, whether full time or part time is required to carry workers compensation insurance. There are some exceptions – work comp coverage is elective for planning commissions, partners, sole providers, licensed real estate agents and brokers, agricultural and domestic workers. All county and municipal governments and all school districts must carry workers compensation insurance.
 
Obtaining Coverage:
To obtain workers compensation coverage in Georgia, the employer has two options which are:
 
1.      purchasing a workers compensation insurance policy from a state approved insurance company
2.      qualifying as an approved self-insured employer and posting a surety bond or a letter of credit with the state
 
 
Claim Reporting:
The employee must report the injury to the employees supervisor within 30 days of the occurrence. The employer is required to file the Employers First Report of Injury form, WC-1 with the Georgia State Board of Workers Compensation. If the employer fails to file the WC-1, the employee can report the claim to the Board of Workers Compensation by filing state form, WC-14, Notice of Claim. (WCxKit)
 
 
Medical Benefits:
The employer must provide a list / panel of at least 6 doctors (at least one doctor must be an orthopedist) for the employee to select from. If the employer fails to post a panel of doctors for the employee to choose from, the employee is allowed to select his own doctor. The employee has the right to switch one time to another doctor on the panel. A unique aspect of Georgia law is the employee who is being paid indemnity benefits can demand a “claimants independent medical examination” by the a doctor of the employees choice (i.e., employee's attorneys choice) within 60 days of the start of indemnity benefits, paid for by the work comp insurance company.
 
 
All authorized medical care and associated expenses (prescriptions, prostheses, mileage reimbursements) are covered by workers compensation. All billing of medical services by medical providers must be in compliance with the Georgia Workers Compensation Medical Fee Schedule, which is updated on April 1st of each year. 
 
 
Temporary Total Disability Benefits:
The temporary total disability (TTD) benefits are calculated as two-thirds of the employees average weekly wage over the 13 weeks prior to the date of injury, not counting the week of the injury. The maximum amount of TTD benefits that can be paid weekly is changed by the Georgia Legislature from time to time. There is no automatic cost of living increase. The maximum TTD benefits per week for injuries are $500.00 per week. The state minimum weekly benefit is $50. 
 
 
The first 7 days of disability (the waiting period) is not paid to the injured employee unless the employee is disabled for more than 21 days. TTD benefits can be paid for a maximum of 400 weeks.
 
 
Temporary Partial Disability Benefits:
In Georgia, the employee will receive TTD benefits as long as the employee is off work from the injury (up to 400 weeks). If the employee is able to return to any type of work, but at a lesser rate of pay then the amount the employee was earning prior to the injury, the employee is entitled to temporary partial disability (TPD) benefits. The TPD benefits are paid at two-thirds of the difference between the pre-injury wage and the post-injury wage. The TPD benefits are paid for up to 350 weeks from the date of injury. The TPD benefits plus the post-injury pay rate can not exceed the state's maximum indemnity benefits rate.
 
 
Permanent Partial Disability Benefits:
Georgia employees are paid permanent partial disability (PPD) benefits for any permanent disability suffered as the result of an on-the-job injury. Once the employee has reached maximum medical improvement, the authorized treating doctor assigns a disability rating based on the American Medical Association Guidelines.   Georgia uses a schedule of injuries for limbs, vision and hearing. The loss of an arm or leg is worth 225 weeks of indemnity benefits (with a week calculated the same as TTD). The schedule decreases as the size of the limb decreases with a small toe being worth 20 weeks. A person with an injury to body as a whole is worth up to 300 weeks of indemnity benefits. For example, if the treating doctor gives the employee a 10% disability rating to the back, and the employees TTD rate was $500 per week, the employee will receive $15,000 ($500 X 300 X 10%).
 
 
Catastrophic Disability Benefits:
Georgia permits the employee to collect a maximum of 400 weeks of indemnity benefits for all types of indemnity combined, unless the employee is classified as having a catastrophic injury which is defined as:
 
1.      Spinal cord injury causing paralysis to an arm, leg or trunk
2.      Amputation of an arm, leg, hand or foot involving the effective loss of use of the body part
3.      Severe brain injury
4.      Second or third degree burns over 25% or more of the body, or third degrees burns to 5% or more of the face or hands
5.      Total or industrial blindness
6.      Any other injury that prevents the employee from being able to work (employees attorneys love this one)
 
If the employees injury is designated as a catastrophic injury, the employee can draw indemnity benefits for life.
 
 
Death Benefits:
The burial expenses in Georgia are covered for a work-related death up to $7,500. The death benefits for a dependent spouse and children follow the same guidelines as TTD benefits – two-thirds of the average weekly wage – currently a maximum of $500 per week, up to a maximum of 400 weeks, except there is a dollar maximum for death benefits in the amount of $150,000. If there is no spouse or dependent children (includes step children and adopted children), death benefits can be paid to dependent parents, college students and disabled adult children. (WCxKit)
 
 
Vocational Benefits:
Georgia workers compensation law also includes rehabilitation benefits / vocational benefits. If the injured employee is unable to return to their prior job due to disabilities from their on-the-job injury, Georgia requires the employer / insurance company to pay for the cost of retraining the injured employee to perform another job. In addition to job retraining, vocational benefits include:
 
9.      Vocational evaluation
10.Vocational counseling
11.Psychological testing and evaluation
12.Job analysis and job modification
13.Job placement
 
Vocational rehabilitation is in the best interest of the employer, the employee and the insurance company as placement in a new job reduces or eliminates the amount of TPD that will be paid, and stops the employee from making a claim for catastrophic indemnity benefits.
 

Author Rebecca Shafer, JD, President of Amaxx Risks Solutions, Inc. is a national expert in the field of workers compensation. She is a writer, speaker and website publisher. Her expertise is working with employers to reduce workers compensation costs, and her clients include airlines, healthcare, printing/publishing, pharmaceuticals, retail, hospitality and manufacturing.  See www.LowerWC.com for more information. Contact:  RShafer@ReduceYourWorkersComp.com or 860-553-6604.

 
WORK COMP CALCULATOR:   http://www.LowerWC.com/calculator.php
 
WC GROUP:  http://www.linkedin.com/groups?homeNewMember=&gid=1922050/
SUBSCRIBE: 
Workers Comp Resource Center Newsletter

Do not use this information without independent verification. All state laws vary. You should consult with your insurance broker or agent about workers comp issues.

©2011 Amaxx Risk Solutions, Inc. All rights reserved under International Copyright Law. If you would like permission to reprint this material, contact
Info@ReduceYourWorkersComp.com.

How to Buy Workers Compensation Insurance Online

Purchasing workers compensation insurance online is becoming more common. Employers who understand the basics of workers compensation are comfortable with online comparison sites like www.WorkersCompensation.com or www.FreeCompQuotes.com where they can enter their basic information and receive several quotes on their workers' compensation coverage.
 
Online quotes are often a fast and easy way for employers to determine the probable cost of their work comp coverage for their next policy year. To obtain a quote, the employer will need the basic information about their company including: (WCxKit)
1.      The name of the company
2.      The Federal Employer Identification Number (FEIN) or Social Security Number (SS#)
3.      The type of entity – corporation, partnership, sole proprietor, etc.
4.      The business address – street, city, state and zip code
5.      The proposed start date for the work comp coverage
6.      The years in business
7.      The number of employees
8.      The annual payroll
9.      The number of prior work comp claims
10.   A detailed description of the business operation {See the Helpful Hint below}
11.   The employer's contact information – contact's name, telephone number, e-mail address and the best time to be contacted
 
 
When a request for a workers compensation quote is made online, the online website copies and duplicates the basic information noted above. The website forwards the information to the workers' compensation insurers that sell coverage in the state where the employer is domiciled. [Populous states may have hundreds of work comp insurers, but many insurers only write specific types of businesses]. Once a quote is submitted to one underwriter, even if you submit a duplicate request through another online provider, the underwriters will not quote more than once on that particular piece of business, thus it's not useful to submit dozens of requests to many different sites.
 
The insurers use the business description to identify the class of business. They use the payroll to calculate the amount of premium to be charged. After evaluating your business risk, they forward to you the proposed premium for the policy year.
 
When the insurance company submits the quote to you, they keep an electronic record of the quote in case you select them for the placement of your work comp coverage. The information is stored in their computer by the FEIN or SS#. Therefore, if you decide to go to a second website for online quotes, it usually does not do you any good. The second website submits the same information to the same workers' compensation insurers. Their computers note the duplication of the FEIN or SS#, and send the same proposed premium to the second website or they do not respond at all. [The work comp insurers are too savvy to bid against themselves].
 
To rate an employer for new coverage, the workers compensation insurers use either the state rating bureau's employers' classifications or the National Council on Compensation Insurance (NCCI) employers' classifications (in the 34 states using NCCI). Hence, all work comp insurers in a state are using the same rate tables, the same payroll and the same loss experience to create your quote for workers' comp coverage. This often results in the employer receiving the same quote from multiple insurers. 
 
There are a few variables that can change the results. {This is the Helpful Hint noted above}.   Some insurers will give a discount of 5% to 10% for certain types of employers. When you complete the detailed business operation description section of the online quote request, add in any of the following items that apply to your business:
1.      Membership in large trade associations or other group organizations
2.      A safety program that has been approved by the trade association or state government
3.      A drug-free workplace program
4.      A history of zero (or a very low number of work comp claims in the last 5 years)
 
 
Additional information you can enter into the detailed business operation description box that can reduce your premium entails taking the time to separate the payroll into several categories. This can reduce your premium as some jobs are considered to have lower risk of injury than others. Enter in the detailed job description window the separate annual payroll for these groups:
1.      Clerical
2.      Outside salespersons
3.      Collectors
4.      Messengers and their helpers
5.      Drivers and their helpers
6.      Chauffeurs and their helpers
7.      Drafting employees
8.      All other employees combined
 
 
Workers compensation insurers can be very choosy in the types of businesses they are willing to write coverage for. Businesses that have a higher than average risk of injuries can have a difficult time getting work comp coverage and often end up with only 1 or 2 insurance carriers providing quotes. If you are an accounting firm with all desk jobs, there will be numerous insurers willing to provide you with a quote for your business. If you are a dynamite manufacturer or asbestos miner, your online request for a quote might not get any replies. In industries where coverage is hard to find, the price quoted is the price it is going to be and it isn't going to change.
 
After you have obtained your online quotes, we will be glad to assist you in evaluating the insurers who have provided the quotes. In addition to the price quoted to you, we can assist in your decision by providing information on the insurer's reputation for claim service, customer service and value added services such as risk management assistance.
 
If your company has a poor safety record, and a disproportionate number of injures for your annual payroll, you may not receive any online quotes. However, you are still required to have workers' compensation insurance. The states address this in different ways. Some states will place your coverage in a state operated insurance fund. Other states will place your coverage in an assigned risk pool. If you are having trouble placing your work comp coverage, please feel free to contact us for assistance.  
 
If you are an employer in Ohio, North Dakota, Washington state or Wyoming, you have to purchase your work comp coverage from the state government. (WCxKit)
 
If you have not shopped around for workers  compensation insurance in the last few years, an online quote is an excellent way to check the price of your current coverage but you have to be responsive to the agent's requests for additional information. If you have recently received a large premium increase for up-coming policy year, now is a good time to obtain an online quote.
WORK COMP CALCULATOR:   http://www.LowerWC.com/calculator.php
 
WC GROUP:  http://www.linkedin.com/groups?homeNewMember=&gid=1922050/
SUBSCRIBE: 
Workers Comp Resource Center Newsletter

Do not use this information without independent verification. All state laws vary. You should consult with your insurance broker or agent about workers comp issues.
 

©2010 Amaxx Risk Solutions, Inc. All rights reserved under International Copyright Law. If you would like permission to reprint this material, contact Info@ReduceYourWorkersComp.com.

Do Amish Have A Competitive Advantage When Not Required to Buy Workers Compensation Insurance Like Other Companies In Same Community

Usually workers compensation insurance centers around who is required to buy workers comp insurance and why. And — what happens to employers who fail to do so — they end up in jail, in law suits and pay huge fines. However, there are culturally religious groups who may be exempt from purchasing workers compensation insurance.

 

 

One of these groups is the Amish community. Largely an agrarian society, modern times force many Amish off their farms into the “real” world of industry and manufacturing. In Michigan, for example, many own woodworking companies providing services to others in the community at large (not only Amish).

 

 

As a community the Amish fought for and received an exemption from paying social security payroll taxes (for themselves and Amish employees) considering it to be an insurance plan for caring for the elderly, sick and infirmed. Their religious beliefs forbid them to participate in government welfare programs or the paying of insurance for benefits received. Instead they see caring for the older members of the community and other Amish in need, as a religious duty and, in fact, implement numerous methods to provide for needy members. (WCxKit)

 

 

The same thinking holds true for buying insurance for workers compensation. Even when an Amish business carries workers comp insurance, it is usually never used as doing so would compromise religious belief. Many states such as New York, Ohio, Kentucky and Pennsylvania provide a “religious exemption” to the Amish from purchasing workers compensation insurance.

 

So, what happens if a workplace injury occurs? The Amish pay into a church operated aid fund or, amazing thought – injured workers pay their own medical bills.

 

 

According to a recent article in the Philadelphia Inquirer this workers comp exemption is causing a huge uproar in the construction and contracting business since the economy tanked. Non-Amish employers are claiming an “unfair” business advantage, citing the Amish’s ability to provide much lower bids. They say hiring the Amish is comparable to a company outsourcing work to another country.

 

 

On the other hand, Amish contractors say they provide a superior product in a very timely manner and experience high customer satisfaction with their work which of course is probably beside the point. In addition, it’s well known the Amish do not pay for all the “perks” of modern life.

 

 

Could it be said the main point is: Employers are required to purchase government provided Workers Compensation Insurance to insure injured workers receive care when a workplace injury occurs? Since the Amish community does pay into a fund to take care of their injured workers does not paying the government-mandated WC insurance really give them an advantage? (WCxKit)

 

 

Every business has its own unique costs of doing business. Employers must constantly review their workers comp usage, workplace safety, injury rates and return to work policies in addition to other factors designed to reduce their overall cost of doing business of which workers comp can be a huge cost if not properly managed. See: http://www.LowerWC.com for essential cost cutting tools.


Author Rebecca Shafer
, JD, President of Amaxx Risks Solutions, Inc. is a national expert in the field of workers compensation. She is a writer, speaker and Website publisher. Her expertise is working with employers to reduce workers compensation costs, and her clients include airlines, healthcare, printing/publishing, pharmaceuticals, retail, hospitality and manufacturing. www.LowerWC.com
Contact:  RShafer@ReduceYourWorkersComp.com or 860-553-6604.
WORK COMP CALCULATOR:   http://www.LowerWC.com/calculator.php

MODIFIED DUTY CALCULATOR:   http://www.LowerWC.com/transitional-duty-cost-calculator.php

 

WC GROUP:  http://www.linkedin.com/groups?homeNewMember=&gid=1922050/
SUBSCRIBE: 
Workers Comp Resource Center Newsletter

Do not use this information without independent verification. All state laws vary. You should consult with your insurance broker or agent about workers comp issues.


©2010 Amaxx Risk Solutions, Inc. All rights reserved under International Copyright Law. If you would like permission to reprint this material, contact 
Info@ReduceYourWorkersComp.com.

 

Top 7 Myths about Workers Compensation

No employer sets out to waste money on workers compensation, but many employers do so unwittingly. The following seven myths are financial mistakes often made by employers in the handling of their workers compensation insurance program.

1.    Workers Comp is a Cost of Doing Business

Too many employers think of workers comp as a state mandated expense, just a cost of doing business which cannot be controlled. However, a properly managed workers comp program can have a major impact on the cost of workers comp by avoiding the cost of claims through a safety program, and by controlling the cost of claims through claim management and medical management.   The cost of the workers comp program should be viewed in terms of the return on investment. When approached from this perspective, the financial profitability of managing workers compensation is absolute.

2.    Injured Employees are a Drain on the Company

When an employer wishes an injured employee would “just go away,” they are making a terrible mistake. The cost of employee turnover (due to workers comp or any other reason) has a negative impact on the profitability of the company. Depending on the industry, the cost of hiring, training and supervising a new employee can be from 50% to 100% of the annual salary for the job position. (WCxKit)
Instead of treating the injured employee as a nuisance, the employer is much better served by communicating with the employee that they are needed at work. The employer who has a return to work program in place prior to an injury, and who offers the employee a modified duty position until the employee is able to handle their prior job fully, will benefit through lower cost of employee turnover and lower indemnity cost.

3.    Workers comp Can be Measured by the Cost of the Premium

If an employer thinks the way to measure the cost of workers comp is by the price of the insurance premium, they are measuring only a small part of the total cost of workers compensation. The cost of workers comp not only includes the direct cost of the premium, but also includes the much larger indirect cost of lost production, lost supervisory time, temporary replacement cost or overtime cost, increased training, equipment or property damage, lower morale and unhappy customers.

4.    The Insurance Carrier should be Selected Solely on Price

It is tempting for an employer to think all insurance carriers are alike and to make the selection of the insurance company (or the third party administrator if self insured) based on the price quoted. The wise employer looks beyond price to the quality of service the insurance carrier provides. The quality of the claim handling by the insurance carrier should be the primary factor. A low initial price for the insurance coverage will not last very long if the claim handling quality is poor, as the experience modification factor will come into play in calculating the next premium. The financially savvy employer investigates the level of service provided by each insurer under consideration and the track record of the insurers in raising (or lowering) the premium charged.

5.    The Broker Relationship is Unimportant

When the broker and the employer have a relationship only as salesperson and customer, the employer loses out on a valuable resource. If the employer selects a broker who has an in depth understanding of workers compensation, a partnership in controlling and managing the workers comp cost can then develop. With a strong relationship between the employer and the broker, the employer has a knowledgeable source of information readily available to assist with the management of the workers comp program.
6.    Lower Job Classification Rates will Equal Lower Cost
Employers often believe that a reduction in the job classification rate means a lower cost of insurance. That is not always so. The calculation of the workers comp premium is based on the job classification code rate, the total amount of payroll and the experience modification factor. The calculation of the premium is: the job classification rate X $100 of payroll X the experience modification factor. If the employer has had higher than average workers comp cost compared to other employers with the same job classification codes, the overall cost of workers compensation will most likely increase due to the higher experience modification factor being used to calculate the insurance premium. (WCxKit)

7.    Safety Programs Cost Too Much

Unenlightened employers when faced with lower profit levels often look at the safety program as a place where cost can be cut.    When safety programs are cut or eliminated, there is an increase in both the number of work place injuries and the severity level of the injuries. The experience modification factor shoots higher, resulting in significant increases in the cost of the workers comp insurance premium.
Summary
Workers comp myths are easy to believe. The common factor through all the myths is taking the path of least effort. When the employer puts forth the effort to understand workers compensation and to properly manage the workers comp program, the myths fade away and are replaced by sound financial decision making.
Author Rebecca Shafer,  JD, President of Amaxx Risks Solutions, Inc. is a national expert in the field of workers compensation. She is a writer, speaker and website publisher. Her expertise is working with employers to reduce workers compensation costs, and her clients include airlines, healthcare, printing/publishing, pharmaceuticals, retail, hospitality and manufacturing.
Contact: RShafer@ReduceYourWorkersComp.com
 or 860-553-6604.

  \ Join WC Group:  http://www.linkedin.com/groups?homeNewMember=&gid=1922050/

Modified Duty Calculator:  http://www.LowerWC.com/transitional-duty-cost-calculator.php

 
Do not use this information without independent verification. All state laws vary. You should consult with your insurance broker or agent about workers comp issues.

©2010 Amaxx Risk Solutions, Inc. All rights reserved under International Copyright Law. If you would like permission to reprint this material, contact
Info@ReduceYourWorkersComp.com.

What Should a Small Business Do If They Have Not Complied with Workers Compensation Laws

If you are a large employer it is impossible (and also illegal) to fail to carry workers compensation insurance. Most states maintain a database of employers in their state. The states compare the information reported to them by insurers and approved self-insurers on who is insured against:

 

  1. information reported to them by the department of labor (list of employers paying unemployment insurance)
  2. information reported to them by the department of state (list of corporations and partnerships). (WCxKit)
  3. information reported to them by the department of commerce (businesses collecting sales tax)

 

If you are a large employer, you will quickly get a notice from the department of insurance if for any reason your workers comp coverage expired and you did not replaced it.

 

[The State of New York’s database contains 800,000+ employers in New York compiled from these and other sources].

 

But what if you are a very small employer, not incorporated or a partnership, and you do not collect sales taxes? Each state sets its own requirements for when an employer is “big enough” to be required to purchase workers comp coverage. In most states, excluding limited exceptions noted in various state statutes, an employer must carry coverage once their small business meets the state specific requirements for number of employees. The number of employees needed to require a business to carry workers comp insurance varies by state from one to five employees, with three employees being the most common threshold for requiring workers compensation insurance.

 

Let’s consider the small business in a state where three employees is the threshold for requiring workers comp coverage. The owner of the business started out with just himself doing everything related to his business. As time went on, he became more established and hired an assistant. Soon the business reached the point where he had to hire a part-time secretary. He never thought about having workers compensation insurance for his assistant and his part-time secretary.   Then the big break comes. In order to handle the new business he hires two additional employees to work with him and his assistant.   With the pressure to handle the new business plus training the two new employees, workers compensation insurance never crosses his mind.

 

A few months later, one of the new employees suffers a workplace injury, tripping, falling and breaking an arm. Now the owner of this small business realizes he needs workers comp insurance. As the business owner cannot buy workers comp insurance retroactively, he has unknowingly joined the ranks of the self-insured. His small business will need to pay all the medical bills his employee incurs as a result of this accident, plus the business will need to pay at least two-thirds (higher in a few states) of the employee’s wages while the employee is off work. [The owner of this small business might be better off to pay the employee’s wage the entire time he is off work and arrange for the employee to return to work on modified duty as soon as possible].

 

The business owner after paying for the employee’s medical bills and wages realizes he should have had workers compensation insurance, and wonders what can he do to get legitimate?   First, he should contact his business insurance agent and report he needs workers comp coverage as he has hired two additional employees. The insurance agent will be glad to write the coverage for the business, but can only write with an inception date in the future (hopefully the next day).

 

Depending on the state where this hypothetical business is located, the business owner may have problems besides paying the workers comp claim of his employee, such as:

 

  1. Criminal prosecution for non-compliance with the law.
  2. A civil fineor penalty imposed on the business by the state (some states have hefty fines in the thousands of dollars).
  3. The employeeobtaining an attorney when he realizes the business owner has no workers comp insurance, and the attorney exercising the option to pursue a tort claim and suing the business owner.

 

Let’s assume the insurance agent for the business elects not to ask too many questions and is able to place the small business with a workers comp insurance carrier. Other than the expenses of paying the workers comp claim, and buying workers compensation insurance coverage for the future, the business owner gets out of this problem with no further cost. But, he still will probably lay awake at night wondering if the state will find out and prosecute him and/or fine his business. (WCxKit)

 

Another example of a small business getting into trouble by not knowing the workers comp laws could be a Canadian business expanding into the United States. At first they check the laws of the first state they expand into and learn you must have two employees to be required to buy workers comp coverage. Since they only have one salesman in the state, they elect to not buy workers comp insurance.

 

Then the Canadian company has a change in the risk management department.   The new risk manager sees they do not have workers comp coverage for their United States salesman, so he concludes it is not required. The Canadian company is successful and they add additional salesman to the same state.   Within 5 years they have six salesmen working from their homes. Then someone in the Canadian company asks about workers comp coverage for the six salesmen.

 

They wish to be legitimate, but what can they do?  They cannot buy workers comp coverage in arrears — no carrier will sell them a policy covering a time frame in the past. They can buy workers comp coverage going forward.   Depending on the workers comp statutes of the state they are in, they may be fined for their failure to have the coverage. Their best bet is to talk with a knowledgeable insurance broker who can guide them in obtaining coverage and address with the state any penalty they may have to pay. (WCxKit)

 

If you need assistance in obtaining workers comp coverage for your small business for the first time, please contact us and we will be glad to provide you with assistance and guidance in the selection of your workers comp insurance broker.

 

Disclaimer:  This article is not intended to be legal advice. If you have questions of a legal nature about failing to comply with the workers comp statutes of your state, please consult with your attorney or legal adviser.

 


Author Rebecca Shafer,
 J.D./ Consultant, President, Amaxx Risks Solutions, Inc. has worked successfully for 20 years with many industries to reduce Workers’ Compensation costs, including airlines, healthcare, printing/publishing, pharmaceuticals, retail, hospitality and manufacturing.  Contact: RShafer@ReduceYourWorkersComp.com  or 860-553-6604.


WC Calculator: 
 http://www.LowerWC.com/calculator.php
TD Calculator:  http://www.LowerWC.com/transitional-duty-cost-calculator.php

Do not use this information without independent verification. All state laws vary. You should consult with your insurance broker or agent about workers’ comp issues.


©2010 Amaxx Risk Solutions, Inc. All rights reserved under International Copyright Law. If you would like permission to reprint this material, contact Info@ReduceYourWorkersComp.com

 

Get Work Comp Quotes Timely Not at Last Minute

Understanding the  timing of your application for workers’ compensation insurance is important. Early application saves you the headache of a “fire-drill” in searching for requested information required on a RUSH basis and makes the process smoother for all involved. Large companies with risk managers know this, although can still get caught in last-minute buying situations. Smaller businesses often do not know that it is prudent to get quotes a few weeks at least before their current policy expires or before they open their business.
Generally speaking,  because so many policies expire on December 31, year-end is a terribly busy time for underwriters, the people responsible for review of your application and pricing. If you have a December 31 or January 1 expiration or renewal date, begin the process approximately 60 days in advance of the expiration to give the underwriter adequate time to review your application, get acquainted with your account and receive responses to any additional questions. The incumbent carrier should be able to provide a renewal quote 60 days prior to expiration. Be sure to let the carrier or your agent know well in advance you will need the quote 60 days before expiration. Second to year-end, the end of each quarter stands out as a very busy period and the same approach is suggested. If you have control over the expiration, try to choose a date other than these “crunch” times. 
The complexity  of your account also dictates to a degree the amount of lead-time necessary to underwrite and quote your premium. Simple accounts with smaller to medium employee counts and single or just a couple jurisdictions should take approximately 30 days during a non-busy period. More complex accounts with many jurisdictions and varied exposures with large groups of employees could require a 60-day or longer lead time to underwrite.
 
Remember,  your carrier is your business partner and the better your agent and carrier understand your business, the better they can properly write a policy to cover your exposures. Don’t forget to mention every state you do business in – even if it seems an innocuous situation. If a claim arises, having the proper coverage in place claim payments are simpler and may prevent a lot of headaches. (workersxzcompxzkit)
The lead time  isn’t needed only because the underwriters are “busy” but because other people are involved in the process, too. Often a loss control specialist will inspect the property as part of the quoting process and write a report for the underwriter which takes time to schedule and complete. Allow your agent and carrier sufficient time to review thoroughly your application so the proper coverage is in place and your needs are met. 

Podcast/Webcast: How To Prevent Fraudulent Workers' Compensation Claims Click Here http://www.workerscompkit.com/gallagher/podcast/Fraudulent_Workers_Compensation_Claims/index.php

 

Do not use this information without independent verification. All state laws vary. You should consult with your insurance broker or agent about workers' comp issues.
 
©2009 Amaxx Risk Solutions, Inc. All rights reserved under International Copyright Law. If you would like permission to reprint this material, contact Info@ReduceYourWorkersComp.com

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