Worker’s Compensation is one area of insurance that you definitely should not skimp on!
In fact, you can’t ! Kentucky is very strict on their laws around Work Comp. coverage. We have had clients call and need the policy sent on the spot because the Cabinet of Labor decided to pop by. If you are unable to show proof of coverage, they can and WILL fine you each day until you can manufacture the coverage.
So, who needs Worker’s Compensation?
If you own a business and have hired employees YOU NEED Worker’s Compensation. Pretty simple.
What if you contract work or have 1099 employees?
Well, you would need a Worker’s Compensation on yourself which is fairly cheap and often referred to as a ghost policy. When you contract the work you have to collect their General Liability policy AND Worker’s Compensation and keep them on file. This information will be asked for with your yearly audit. If you cannot provide this information they will be counted as employees and their pay will be added to your payroll. This will make the premium higher and you will owe the difference.
What is the premium for Worker’s Compensation based on?
Each class of business has a code that the insurance is tied to. It’s based on the risk of the service you are providing. Additionally, it is based on your payroll. The more employees you have, the higher the payroll and the higher the risk will be.
To review your General Liability, Worker’s Compensation or Commercial Auto policies call me at 859-916-4513!