Q. What is Workers' Compensation Insurance?
A. It’s “on-the job” insurance for injured workers. Workers’ comp provides benefits to your employees for work-related injuries or illnesses. This includes reasonable expenses for necessary medical care, wages from lost work time, disability benefits and survivor or death benefits.
Q. Who does Workers' Compensation Cover?
A. Full-time, part-time – maybe even the owner. The laws vary by state, but full-time and part-time employees are covered by workers’ comp, and in some states the business owners, partners and officers may be covered too.
Q. Why does a client need Workers' Compensation Coverage?
A. When an employee gets hurt on the job or has a work-related illness, only workers’ comp will cover them. Health insurance won’t even consider the expenses. Also, it is a law that you must provide workers’ compensation coverage if you have 3 or more employees which includes part-time or full-time.
Q. What is an Experience Modification?
A. It is the adjustment of manual premium based on previous loss experience. Usually three years of loss experience are used to determine the experience modifier for a workers' compensation policy when a premium is over $4,500 for those years consecutively. The three years typically include not the immediate past year, but the three years prior.
Q. Who is an Officer?
A. An officer is an individual that holds a title within the company and is listed under Articles of Incorporation with the Secretary of State.
Q. Why is an Audit processed?
A. The purpose of an audit is to make sure that the client is paying the right premium so that they don’t pay too much or too little.
Q. Who has to conduct an Audit?
A. Every client that has a workers’ compensation policy must comply with the carrier that the coverage is through.
Q. How are Audits processed?
A. Every carrier is different. Once a policy is coming up towards the end of the term an auditor will contact a client by a phone call or sending documentation requesting the information that will be needed in order to process. Audits can be processed in several ways per the following: · Mail in Audits – the client will need to mail in all documentation that has been requested by the carrier · Fax in Audits – the client will need to fax in all documentation that has been requested by the carrier Physical Audits – an auditor on the behalf of the carrier will actually meet with the client and review all documentation