25 May Workers Comp for Consulting Firms
Workers Comp for Consulting Firms
There are many things to consider when purchasing Workers Comp for a Consulting Firm. This can include coverage for independent contractors, classifications, and carrier discounts. We will explain some of the most important items to remember when shopping Workers Comp for your Consulting Firm.
Workers Comp for Consulting Firms – Who is Covered?
Workers Comp for Consulting Firms is often unique as many consulting firms utilize independent contractors or alternately operate as owner-owner operations. This can make it tricky to determine who should be covered. Workers Comp carriers in general do not want to pick and choose between employees and independent contractors, they want to cover all of them. With that said, when you are shopping for Workers Comp, it is important to include all of the employee and independent contractor payroll, as many carriers may surcharge you at the annual audit when they find out about the independent contractors. If you are operating an owner-only operation, Workers Comp is optional, however, more companies are requiring small owner-only operations to still carry Workers Comp for themselves.
Workers Comp for Consulting Firms – Classifications
Classifications for Consulting employees is where Workers Comp can get tricky. There are many classifications that may apply, which is what makes it particularly tricky to accurately classify employees. In general, Consulting Firms should use the class code of the industry they are consulting in. For example, if your employee is providing computer programming consulting, they would take on the computer programming class code. While this tip should suffice for most employees, sometimes your employee may not fall under a specific class code. In these cases, the employee would then likely fall into the 8742 class code, also referred to as the ‘salespersons-outside’ class code.
Workers Comp for Consulting Firms – Carrier Discounts
There are a few important items to remember with Workers Comp carrier discounts that could affect your premium substantially. Some carriers are very lenient with discounts while others have strict guidelines to adhere to. In general, it is important to maintain continuous coverage without lapses because preferred carriers will sometimes decline or surcharge risks that have lapses, or gaps in coverage. In addition to maintaining continuous coverage, you may be able to obtain discounts by implementing a formal safety program. A formal safety program could include weekly meetings, a authorized driver program, or a return to light duty plan. Your Workers Comp carrier should have resources available to help you implement one or all of these programs.
If you would like to speak to us regarding your Consulting Firm, we would love to hear from you! 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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