Workers Comp

Workers Compensation insurance is one of the most important (and legally required) insurance coverages for a business.  It is vital, but also one of the least understood types of insurance in the market place.  See the topics below for good general information or search the categories for more.  As always, if you have specific question – give us a call.

  • Workers Comp Coverages
    • Every workers comp policy covers employee injury sustained on the job.  This benefit will cover in some degree medical bills and lost wages due to an on the job accident.  The 2nd part of workers comp policies – at least here is California – is the Employers liability coverage.  This covers liability from negligence or perceived negligence on the part of the employer in the event an employee sues.

 

  • Correctly categorizing your employees
    • Workers Comp policies are rated based on employee classifications.  Rather than classifying each specific employee by job descriptions, employees are classified by the industry or business type, with a few exceptions which will be noted later.  For example, all print-shop employees will be classified by the print-shop code, all engineering company employees will be classified by the engineering class code, and all grocery store employees will be classified by the grocery store class code.  There are a few exceptions including outside salesmen and clerical office employees.  These types of employees are similar across industries and fit better outside of the industry specific class codes.  There are strict rules to justify these class codes, so make sure you discuss these in advance.  The exception class codes can be less expensive in many industries, which is a help to the business; However, if you happen to misclassify your employees into one of the exception class codes your end of the year audit can bring some nasty surprises.

 

  • Why will there be an audit?
    • Audits are very common in insurance.  Many policies require an audit as the rate is based on a fluid number such as payroll or sales.  The initial quote at the beginning of the policy term is an estimate or best guess for the coming year.  Since Workers Comp is a required coverage when a business employs workers, premiums are rated and based on anticipated payroll.  As this is a mandatory coverage that few business owners (if any) relish paying, audits are used to verify the correct premium is paid to cover the risk exhibited with the employees working.  There are several ways to make the audits less troublesome, give us a call to go over these.

 

  • Why should you use Heaton & Associates as your broker?
    • Competitive Rates
    • Annual Rate Shopping
    • Proactive Account Management
    • Class Code Verification
    • Pay-as-you-go Options
    • Proactive Risk, Claim & Audit Management
    • X-Mod & Historical Tracking
    • Painless Implementation
    • Accessible Staff
    • Free Consultation