06 May Workers Comp for California Auto Dealerships
Workers Comp for California Auto Dealerships
Auto Dealerships in California, like any California business, are required to carry Workers Comp for their employees. There are several items to consider when shopping for Workers Comp. This blog is your guide in making sure you are successful in purchasing Workers Comp for your California Auto Dealership.
Workers Comp for California Auto Dealerships – Independent Contractors
Many Auto Dealerships have their salespersons hired on as Independent Contractors. There are many reasons for this, one of them being the belief that you do not have to provide Workers Comp for Independent Contractors. The reality is, in most cases, Independent Contractors are still considered employees by the Workers Comp carrier. In general, Workers Comp carriers want to include Independent Contractor payroll in addition to the employee payroll. It is important to include this payroll at policy inception, as carriers sometimes find out about the Independent Contractors halfway through the policy term and include their payroll, which can raise the premium substantially.
Workers Comp for California Auto Dealerships – Classifications
When purchasing Workers Comp, it is also important that your employees are classified correctly. There are several different classifications for Auto Dealers, depending on the type of work completed by the employees. This is a critical step in purchasing Workers Comp because the rates between these class codes can be substantial. In addition, if an employee is misclassified, the carrier may change your classifications, which may result in a premium change. This can be inconvenient and costly, depending on the classifications that are changed.
Workers Comp for California Auto Dealerships – Shopping Your Workers Comp
Shopping your Workers Comp annually is an important part of keeping your premium low. This is because Workers Comp carriers’ rates and guidelines change often. The same carrier that may have declined to quote your company the year before may now have the best rates. When shopping for Workers Comp, you should always request Loss Runs from your prior carrier. Loss Runs are a loss history report that is generated by your prior carrier to show your claims history. It is important to obtain Loss
Runs even if you don’t have any claims. This is important because some carriers can give you credits on your policy for having a good loss history.
If you would like to learn more about Workers Comp for your Auto Dealership, give us a call at 925-297-4829.
All information is general in nature and is intended to provide guidance only. It is up to you to request specific coverage options, the agency and agent do not bear this responsibility. Always read the policy if there is a questions about coverage or a claim. If any information herein should conflict with your actual policy’s specific language, the policy language will be controlling.
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