Workers’ Compensation Coverage for Hedge Funds in Minnesota
Hedge fund employers must provide Workers’ Compensation to their employees, lest they risk being financially penalized and held responsible for a worker’s damages due to an on-the-job accident.
Workers’ Compensation is mandatory for all hedge funds that operate in Minnesota. There are no exceptions to this mandate. Breaking the rules regarding insurance coverage can lead to fines from the Minnesota Department of Labor and Industry. Hedge funds might also be held liable for the damages incurred by an injured worker. To avoid such headaches, hedge funds need Workers’ Compensation. The cost of Workers’ Compensation should be quite low for hedge funds and other similar businesses, as they are at a low risk for workplace accidents.
To learn more about what our Minnesota Workers’ Compensation insurance brokers can do to help your hedge fund, call NPN Brokers at (866) 340-9120.
Workers’ Compensation Coverage Grace Period for Hedge Funds in Minnesota
There is no official grace period for hedge funds that do not have Workers’ Compensation in Minnesota to get insurance. Such companies must have workplace liability insurance policies at all times.
Minnesota has strict laws regarding liability insurance for all businesses, and hedge funds are no exception. There is no minimum employee requirement for Workers’ Compensation insurance, meaning all companies, even those with only one worker, have to have coverage. Hedge funds are generally large operations with many employees, meaning they always need Workers’ Compensation policies.
Because of this, hedge funds cannot have a lapse in coverage. If your policy was canceled and you need insurance immediately, contact our Workers’ Compensation insurance brokers. Our brokers are practiced in sourcing quotes in as little as a day so that hedge funds in dire need of coverage can get it as soon as possible.
If there is a lapse in a hedge fund’s Workers’ Compensation, and the Department of Labor and Industry becomes aware of this lapse, it might assess penalties. Financial penalties are often more expensive than Workers’ Compensation premiums for hedge funds in Minnesota. Hedge funds might be fined for a variety of prohibited practices, such as filing a first report of injury too late or simply not having a Workers’ Compensation policy in place.
Suppose a workplace accident occurs when a hedge fund does not have an active Workers’ Compensation policy. In that case, the company might become responsible for covering damages incurred by an employee, such as lost wages and medical expenses. Such accidents might also alert the Department of Labor and Industry about a hedge fund’s non-compliance in Minnesota, resulting in further consequences.
Contesting Workers’ Compensation Penalties for Hedge Funds in Minnesota
Financial penalties from the Minnesota Department of Labor and Industry are often expensive. If the penalty was wrongly assessed against your hedge fund, you can contest it in Minnesota.
Upon being notified by the Department of Labor and Industry about a Workers’ Compensation violation, a hedge fund has options. It can either accept the penalty and pay it within 30 days or contest it. If you have a Workers’ Compensation policy, submit proof of insurance to the Department of Labor and Industry. That should be sufficient evidence to settle the matter and erase the penalty.
If your policy was recently canceled, but you have secured a new one, you can contact the Department of Labor and Industry to explain the situation. Depending on the case, the Department of Labor and Industry might drop the fines against your hedge fund.
If a hedge fund does not pay the penalty within 30 days or its objection to the penalty is unsuccessful, it might be further penalized in Minnesota. The best way to avoid these penalties and keep your hedge fund out of the Department of Labor and Industry’s crosshairs is to have a Workers’ Compensation policy that protects your business and its employees. Complying with all Workers’ Compensation law requirements is important, including providing hedge fund employees with the proper information about their rights and the claims process after a workplace accident.
Self-Insuring vs. Getting Workers’ Compensation from a Private Carrier for Hedge Funds in Minnesota
Like many states, Minnesota allows hedge funds and other companies to self-insure instead of getting Workers’ Compensation from a private carrier, provided they can prove their financial stability.
When hedge funds self-insure, they commit to providing injured workers with compensation following workplace accidents. This can appeal to hedge funds, especially because such companies rarely see employee injuries. However, to self-insure, hedge funds must be financially stable. This requires hedge funds to submit financial information from the past five years, proving their financial security. Hedge funds must also put down a considerable down payment in order to self-insure in Minnesota.
Then there is the alternative, which is getting Workers’ Compensation from a private carrier. This is the most commonly picked route for a few reasons. The first is that by getting a policy from an insurance carrier, hedge funds do not have to assume the financial risk of a workplace injury. They instead pay monthly premiums to their carriers, who will then pay benefits to an injured worker as necessary. Because hedge funds are not in a high-risk industry for Workers’ Compensation purposes, monthly premiums are typically inexpensive.
Furthermore, having a private insurer allows you to sit back and relax as an employer. You will not have to worry about the stresses of processing a Workers’ Compensation claim and can leave that to your carrier instead. When hedge funds choose to self-insure, the responsibility of processing claims and paying benefits falls on them and them alone. If a hedge fund cannot absorb the cost of a workplace accident upon choosing to self-insure, it might go bankrupt in Minnesota.
Contact Our Brokers to Secure a Workers’ Comp Policy in Minnesota
Call our Workers’ Compensation insurance brokers now at (866) 340-9120 to get a policy quote from NPN Brokers.
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