How to Get Workers’ Comp Insurance in High-Risk Industries
Finding workers’ compensation insurance in high-risk industries is a difficult and time-consuming process, especially for companies that are considered “high risk”. High-risk industries include roofing, tree trimming, solar installation, manufacturing, agriculture, electricians, veterinary hospitals and others where the potential for accidents or injuries is greater than usual.
If you are high risk, here’s a general guide on what you should know to obtain workers’ comp insurance:
Determine Your State’s Requirements
Workers’ compensation insurance requirements vary by state, so start by researching your state’s requirements. Each state has its own rules regarding coverage, benefits, and eligibility. For example, in California almost every worker needs to have worker’s compensation. In Texas, on the other hand, workers compensation is usually not required. While Florida is between California and Texas. A company in the Sunshine State does not need to have workers compensation insurance unless they have 4 or more employees and are NOT in the construction industry. As every state is different, it is important you know what your state requires.
Find an Insurance Carrier
Once you understand your state’s requirements and have confirmed your industry’s classification is indeed “high-risk”, you’ll need to find an insurance carrier that specializes in workers’ compensation coverage for high-risk industries. High risk industries are usually covered by only a select few carriers. For example in Florida, roofers, gutters and framers are only covered by a handful of carriers. If you don’t know where to look, you will be met with disappointment. In our experience, carriers you contact for a quote will not immediately tell you they won’t cover you, but instead will take your information and tell you they will “get back to you shortly”. Weeks later, you will be told they can’t cover you and you will foolish you wasted time in a fruitless endeavor.
Contact a Broker
Contact an insurance broker with access to multiple insurance carriers and let them request quotes for workers’ compensation coverage. Provide the broker with detailed information about your business, such as the number of employees, payroll figures, and the specific risks associated with your industry. This information will help insurers assess the cost of coverage. While you will wait a week or two to get a quote, a broker can usually get multiple quotes in a couple of days.
Evaluate Coverage Options
Review the quotes and coverage options provided by different insurers. Consider factors such as coverage limits, premiums, deductible amounts, and any additional benefits or services offered. All carriers are not equal. Some carriers offer worker’s compensation insurance only, while others can bundle health care insurance, general liability insurance, payroll/HR services to your policy. Figure out what you and your employees need and tailor a policy around what your company can afford.
Establish a Safety Program
Implement a comprehensive safety program within your organization to reduce the risk of workplace injuries and illnesses. Insurance carriers typically offer discounts or incentives for businesses that prioritize safety. This is especially true if you are in a high-risk industry where injuries are commonplace.
Keep accurate records of all employees, payroll information, injuries, and claims. Proper documentation is crucial for compliance and in case you need to file a workers’ compensation claim. As most workers compensation policies require a comprehensive yearly audit from the insurance carrier to ensure they are insuring the right people and collecting enough premium for the coverage, it is important to keep clear records.
Monitor and Review
Continuously monitor and review your workers’ compensation insurance policy and safety programs. Adjust your coverage through notification to your carrier when an employee’s job duties have changed. For example, if your insured is classified to handle simple lawn care, and then the employee brings a claim where he/she is injured falling out of tree, that might not be covered under your policy as tree trimming would be priced higher than lawn maintenance.
Report Claims Promptly
When an employee is injured in the course and scope of their work, report the workers’ compensation claim to your insurance provider promptly. If you don’t report the claim timely, you might not be able get the claim covered under the policy and the injured worker may be entitled to file a personal injury claim.
If this all seems to be too much, you’re right, it is!
That is why you should call NPN Brokers. With just moments of your time NPN can get the information we need from you to find coverage for your high-risk industry at an affordable price within 24 hours. We will also tailor the right policy for your needs and work to get you a policy without a time-consuming and stressful audit. Call us today. We are here to help!
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