17.2% Decrease for North Carolina Workers Compensation Rates 2019

North Carolina Workers Comp Rates will be declining in 2019

In 2019, businesses in the state of North Carolina will pay on average 17.2 percent less for workers compensation. This decrease is in addition to a 8.5% decrease in 2016 and a 12.5% decrease in 2017. This is great news for North Carolina. In 2018, North Carolina ranked near the middle of the national average. A 2018 study ranks NC as the 23 highest in premium rates across the United States making their average rates 4% higher than the national average. A similar study done in 2016 ranked the state as 27th for average rates. North Carolina’s median rates are currently on par with the average rates in the U.S. This decrease should lower the states ranking and considering North Carolina is the 10th most populous state, this is great news for the business community.

Why are North Carolina Workers Compensation Insurance Rates Declining in 2019

North Carolina Workers Compensation Rates 2019 are decreasing primarily as a result of insurance carriers processing fewer claims and paying out less for workers’ compensation claims. Because of these declines in claims and payouts, the carriers are able to pass on the savings to customers. Now not all industries are going to see the same amount of decrease. Some industries may fair better than others. According to the North Carolina Rating Bureau (NCRB), manufacturing industry groups will experience an average drop of 15.8 percent, contracting industry groups will see a decrease of 6.5 percent, and both office and clerical as well as goods and services will see an average of 19.3 percent decrease to both industries.

Requirements for Workers Comp Coverage in North Carolina?

In the state of North Carolina employers with three or more regular, full, or part-time employees are required to secure workers comp coverage. This includes all corporations and non-profits. Sole Proprietors, Partners, and LLC Members are automatically excluded from coverage, but have the ability to elect coverage. Corporate officers are included on all policies, but can exclude themselves using the Accord 130 form.

Payroll Requirements for Business Owners in North Carolina

Sole Proprietors and Partners who include themselves on coverage must use an annual payroll of $46,900 for rating purposes as of 04/01/2019. Corporate Officers who do not exclude themselves from coverage must do so at a minimum payroll of $46,800 and a maximum annual payroll of $93,600 as of 01/01/2019.

What is Unique about the Workers Comp System in North Carolina?

Experience Modification Rating

The Workers Compensation System in the state of North Carolina is unique because the state calculates the Experience Modification Rating of business on its own. The department that does this is the North Carolina Rate Bureau (NCRB). Most states partner with the National Council on Compensation Insurance (NCCI) to establish these ratings. North Carolina does report claims to NCCI for the purpose of determining interstate modifiers. This applies to employers who operate in North Carolina and other states throughout the country.

Waiver of Subrogation

Waivers of Subrogation are no longer required in North Carolina. They are not required because North Carolina Law establishes that a principal contractor is not responsible for subcontractors. This may cause contractors to face unique challenges throughout the state. Regardless, general contractors may be liable for injuries and coverage of uninsured subcontractors. In some instances, a general contactor may charge subcontractor for the cost of workers compensation while working on various jobsites.

The North Carolina Business Community will be seeing improvements next year in the form of lower workers compensation rates. This good news resulted from insurance carriers processing fewer claims and paying out less for the claims that were processed. These improvements are attributed to technology improving the efficiency in improvements and the safety of the workforce. In light of these savings, business owners should consult with their insurance agent to make sure they are maximizing all possible savings when it comes to workers compensation as well as all other forms of commercial insurance. Partnering with an independent agent is the most efficient way to ensure comprehensive coverage at the lowest rate possible.

How can Businesses Ensure Maximum Savings on North Carolina Workers Compensation Rates 2019

Partner with an Independent Agent

Partnering with an Independent Agent is one of the best ways a business can make sure to get maximum coverage at rock-bottom rates. This is a fact because an independent agent is not pressured to sell you the coverage of one insurance carrier. An independent agent can shop your policy out to multiple carriers. Multiple carriers competing for your business can get your business better coverage at better rates. Additionally, the independent agent knows which carriers are hungry to quote the policies you are looking for, in the particular state you are located, and in the industry your business operates. This inside knowledge can save you time and money when looking for coverage.

Control Your Experience Modification Rating

The experience modification rating of a business is crucial to limiting what the business pays for premium. The first thing an underwriter looks at when determining if they are going to offer coverage to a business and what to charge that business for coverage, is the classification code of the business and the experience modification rating of that business. Controlling this rating is one of the more impactful aspect a business has control over. Especially related to what the business pays for commercial insurance, especially workers compensation.

Prepare for Natural Disasters

In North Carolina, Natural Disasters are a risk to consider. This is the case no matter what part of the state you are located. Hurricanes and flooding are especially important to speak with your insurance agent about. The amount of risk you are comfortable with may not be the same as other business owners. If this is the case, it is important to express this to your agent. Tell them what you do, what the climate is like, and the level of risk you’re comfortable. With this knowledge, a good independent agent should be able to find several packages to suit your needs.

Develop an In-depth Safety Program

Safety Programs are one of the most cost effective ways for a business to save money. Not only can an effective safety program help a business save on commercial insurance, it can also help save money in many other ways. Lowering damage to equipment, less missed days by injured employees, and a happier workforce are at the top of the list of ways a business can benefit from an effective safety program.

Include a Return-to-Work Program

A Return-to-Work Program is something that can be implemented in tandem with a safety program and save your business immensely when you do experience an injured worker. Statistics show, the quicker an employee gets back to work, the more likely they are to return to work. This will save your business considerably by not damaging your experience modification rating, by not having to deal with a missing or injured employee, and by not having to retrain a new employee to do what the injured employee had experience with.

Exclude Owners

An Owner Exclusion in North Carolina is generally permitted for a business to exclude themselves from workers’ compensation insurance. This is true for every form of business. That includes sole-proprietors, partners, LLC owners, and corporations. Owners who decide to exclude coverage on themselves are not covered in the event they are injured on the job. If the business is willing to take on the risk, excluding the owners from coverage can save each year on workers compensation premium.

Ask about Credits and Discounts

North Carolina law allows insurance carriers to apply scheduled credits up to 25% of the full premium on each individual workers compensation insurance policy. This is in addition to credits already given to the policy holder.Credits are typically given because of a good Experience Modification Rate. Credits are usually given for management experience, no prior claims, and profitability of an account. Employers should always take additional time to speak long and honestly with their insurance agent to inform them about every positive the business has to offer. It is equally important to request additional credits when shopping workers compensation quotes.

Florida Workers Comp Rates Remain in Flux for 2019

Florida Workers Comp Rates 2019 are headed in a positive direction.

In 2019, Florida Workers Comp Rates are improving for the business community throughout the state. The decline amounts to a deduction of 13.9% and will contribute to a savings for business in Florida of approximately $454 million. This is good news because the Florida Workers Compensation System has been in flux for a number of years. This decrease is the third such decrease over the previous year and a half. Previous to these three decreases, the workers compensation rates had increased by 14.5% in 2016.

Florida Workers Comp Insurance Rates 2019

What Caused Florida Workers Compensation Rates 2019 to Decrease?

Florida Workers Comp Rates 2019 are decreasing because of significant improvements in experienced losses by insurance carriers. This means the insurance carriers paid out less in claims. Some within the industry credit safer workplaces, enhanced efficiencies in the workplace, and an increase in the use of technologies for the decrease in costs.

What is Unique about the Florida Workers Compensation System?

The most unique aspect of the Florida Workers Compensation System is that Florida is a No Competition State. This means Florida is one of the few remaining states in the country where every insurance company offering coverage within the state are required to offer the same rates and discounts as all other carriers. State mandated rates mean employers do not have to shop around as much as more competitive states. Business primarily need to be concerned about finding an insurance carrier willing to offer coverage on the voluntary market with the most cash flow friendly payment options and the business needs to avoid the Florida State Fund.

Pond with a waterfall and palm trees in the background at a Miami, Florida Golf Course.

Why have the Workers Comp Florida Rates 2019 Been in Flux?

For the past few years, workers compensation rates within the state of Florida have been in flux for a number of reasons. Two State Supreme Court Decisions have contributed to the instability. Those cases were Castellanos v. Next Door Company and Westphal v. City of St. Petersburg. Castellanos vs. Next Door Company made a previous 2009 ruling invalid, meaning judges no longer had to stick to the mandatory fee schedule and now can award additional compensation for attorney’s fees when offering judgments within the workers compensation system. The Westphal Case, had a ruling that ruled the 104-week statutory limitation on temporary total disability benefits is unconstitutional. This ruling extended this period to a 260-week limitation. This 260-week limit is more in line with states throughout the country and significantly increased the amount carriers had to pay for permanently disabled injured workers.

Another factor that has caused the workers compensation system in the state of Florida to be out of whack is State Senate Bill 1402. This bill accounted for 1.8% of the recent increase in premium by increasing the cost for updates within the Florida Workers’ Compensation HCPR Manual.

In addition to these issues, in 2017 the Florida Insurance Regulators took over Guarantee Insurance Company (The states assigned risk workers comp provider) because it had become insolvent. This left 1250 businesses in the state of Florida scrambling to find a workers comp carrier.

Epcot Center, Disney World, Orlando, Florida

What could be in store for future rates?

Hurricane Michael Relief

In response to Hurricane Michael, Florida Governor Rick Scott issued an emergency order that make sure “additional protections” are in place for Florida policyholders – including freezing any rate hikes for 90 days.

The order requires that insurers:

Provide an additional 90 days to policyholders to supply required information to their insurance company. Many Floridians were displaced during this dangerous storm, and providing additional time to submit information to insurance companies gives them needed flexibility.
Rescind for 90 days all non-renewals or cancellations issued to policyholders in the days leading up to Hurricane Michael. This gives policyholders 90 days to either renew their insurance policy, or find a new policy; and
Freeze any and all efforts to increase rates on policyholders for 90 days.

Independent Medical Review Program

Florida is looking in to implementing a 6-year-old independent medical review program for workers compensation claims. This program has been enacted by the state of California and has been a resounding success. Under this program disputes about the medical treatment of injured workers are resolved by physicians instead of by the courts. California has found this has enabled for a more efficient resolution of claims while reducing the need for lengthy and costly judicial processes.

New State Senate Promising to Revisit Florida’s Workers Comp Laws

The new President of the Senate in the state of Florida, Bill Galvano, is promising to revisit Florida’s workers’ compensation insurance laws. At a recent ceremony shortly after taking over as President of the Senate Galvano said, “I don’t want to be in a situation where they spike and then we are running to fix it at that point”. Statements like these from the leadership of the Florida legislature show the decision makers in the house are looking forward to attempt to provide a stable market for the business community and eliminate the volatility businesses have seen in recent years for Florida Workers Comp Rates.

Turtles and Alligator at Busch Gardens, Florida

Florida Workers Comp Requirements

There are several requirements for businesses operating within the state of Florida. First and foremost, non-construction companies with four or fewer employees are required to purchase employees. It does not matter if those employees are full or part-time. All construction related businesses are required to secure coverage no matter the number of employees within the business. Sole Proprietors and Partners are not required to cover themselves and are exempt from coverage. A corporation and LLC may exempt officers if each owner owns less then 10 percent of the stock in the business. Sole Proprietors and Partners are not required to cover themselves and they are automatically excluded. These people can elect to be covered using form DWC-251. Corporate Officers of non-construction businesses can exempt from coverage if they own stock and hold an office on the board of directors. LLC Members of non construction businesses are treated as employees, but may be exempt of they so choose.

Miami, Usa, Beach, Miami, Miami, Miami

What can Florida Business Owner do to Maximize Savings?

Shop around your Policy

It is not a wise decision to switch carriers every year for a slight decrease in premium. This is because when a claim does occur a carrier will take in to consideration how long you have been a customers of theirs when they are deciding to raise your rate or deny your business coverage. At the same time, it is important to make sure your business is getting a competitive rate. The best way to do this is to partner with an independent agent who can shop around your policy for you. This can save you time and usually result in lower premium payments on more comprehensive coverage.

Invest in Safety Protocols

Safety is the name of the game in any business. It is what is best for your employees as well as your customers. It is also important when it comes time to purchase commercial insurance. a safer business will have less claims and the claims it does have will be less severe. A small investment in a safety program can pay huge dividends when looking for the lowest Florida Workers Comp Rates.

Choose the Pay as You Go Option

Pay as You Go Workers Compensation Insurance is an excellent option for seasonal and cash strapped businesses. This option allows businesses to get coverage in place at a significantly lower rate than a traditional workers comp policy. Once a policy is in place, the premium is paid monthly based upon the actual payroll from the previous month. This is a great option if your business operates in an industry that has a hard time forecasting payroll for a number of reasons. If your payroll is significantly lower one month the payment will reflect that and the same will occur in months when your workforce represents more man hours. Finally, a Pay as You Go Policy prevents most mid-term audits from occurring because the payments are more accurate from month to month and not based upon an estimate from previous years payroll. This prevents an unwelcome surprise from occurring at the end of a term when a business under pays premium throughout the year and has an unexpected payment to end the year.

Indiana Workers Compensation 2019

Indiana Workers Compensation Rates are going down by an average of more than 7%.

Indiana Workers Compensation Rates 2019 will be going down by an amount of 7.6 percent on average for businesses throughout the state. The Department of Insurance approved the decrease in the month of October and the benefits go in to effect the first of January 2019. This savings is estimated to amount to a savings of more than $60 million for Indiana Businesses.

Indiana Workers Compensation

Why are Indiana Workers Compensation Rates 2019 Declining

Many things go in to what a business pays for workers compensation insurance. The experience modification rate of the business and the strength of the assigned risk provider in the particular state equate an enormous amount towards what a carrier decides to charge a business for coverage. Indiana Workers Compensation are decreasing because of lowering frequency of worker injuries. The department of insurance also credited a robust job market as a reason for lower rates because as the economy grows people open more businesses which create a larger base for insurers to collect premiums.

Indiana Farm In Winter

How can Business Owners Maximize saving on Indiana Workers Compensation Rates 2019?

Shop Around Your Indiana Workers Compensation Policy

It is never a good idea to switch carriers at the drop of a hat because of a small drop in premium. At the same time it is equally important to shop your policy around periodically to ensure your carrier is offering a competitive price. An efficient way to do this is to partner with an independent agent.

Use an Independent Agent

Partnering with an independent agent is always a great way to ensure maximum savings on the most comprehensive coverage available. An independent agent is a good partner because they can shop your policy around to multiple carriers in an attempt to get better coverage at lower rates by forcing the carriers to compete for your coverage. An independent agent will allow you to focus on running your business while your agent shops around your insurance policy.

Ensure Your Business is Classified Properly

Far too many businesses have employees that are not classified properly. If you have different types of employees than it is important to discuss this with your insurance agent at renewal. This can be an issue if you have some employees who are in office/clerical positions yet other employees who may be in other positions that are more physical in nature. When employees are classified improperly, it is typically cleared up during the post term audit. Even when t his mistake gets cleared up during the end of term audit, it still causes the business to either over pay throughout the year or have an unexpected additional payment at the end of the term. In order to not over or underpay your insurance premium, make sure you are placed in the proper classification code.

What is a Ghost Policy?

Have you heard the term Ghost Policy?

It is typically referred to in regards to workers compensation insurance. A Ghost Insurance Policy is a term used to describe a specific type of workers’ compensation insurance policy. This type of policy is issued to individual business owners that have no direct coverage value. It can be a great policy for small contractors and subcontractors who have no employees or subcontractors.

Ghost Policy

What is a Ghost Policy?

A Ghost Policy is a minimum earned premium policy. A policy of this nature commonly costs between $750 and $1000 annually. This is depending on the state the policy is issued and several factors related to the industry the business operates. One major difference from a traditional workers comp policy is that a Ghost Insurance Policy has no payroll calculated into the premium. It also excludes all owners from the policy. This is where the term “Ghost”comes from. Now the premium will vary by carrier and includes the state expense constant, There are minimum premium amounts required to administer a policy.

Why might someone want a Ghost Policy?

While many business owners might think it is a waste of money to purchase this type of a policy, but it may be a preferable alternative to going without coverage for a number of reasons. A Ghost Policy enables a business owner to have a certificate of insurance issued. Many contracts require a certificate of insurance in order to secure financing and to do business legally in many states. In addition, a Ghost Insurance Policy can cost a fraction compared to a policy including the owner. Also, in most cases, a Ghost Policy provides employer liability protection in the event an employee is hired or a payment is made to an uninsured subcontractor. Uninsured Subcontractors are especially important to protect your self and your business from, even if you only interact with subcontractors infrequently. Trusting that a subcontractor is self insured is a good way to get your business in to a situation no business owner wants to be in.

Ghost policies don’t provide coverage, so why would I want one?

The biggest reason small contractor or subcontractors benefits from a Ghost Insurance Policy is to meet state legal requirements or to provide a certificate of insurance to another client or general contractor. Many other businesses, customers, and other contractors require an independent contractor to provide a certificate of insurance in order to enter into a contract with them. The fact that the business does not hire employees is inconsequential to them. They want to have a certificate of insurance in place to make sure they are not held liable for damages or bodily injury that occur within the contract. Many independent contractors do not employ any other people. These contractors want to prevent high workers compensation premiums just to cover themselves with traditional comp coverage. Unfortunately, in some states these contractors are required to show some proof of insurance coverage. In most instances, a Ghost Policy will help them meet these requirements the most cost effective way.

Landscaping: Pay as You Go Workers Compensation

4 ways Small Businesses can save when purchasing Pay as You Go Workers Compensation for Landscaping Businesses

The Landscaping Industry can be seasonal in nature depending upon the climate where a business is located. The industry is also dependent, to some extent, upon the weather. Because of this seasonal nature and the dependency on the weather, it can be difficult to forecast man hours throughout the entire year. This can make a traditional workers compensation policy costly and in accurate. For this reason it is wise for most companies to go with Pay as you Go Workers Compensation for Landscaping Businesses.

Pay as You Go Workers Compensation for Landscaping Businesses | My Insurance Question

Low Up-front Costs

With a traditional workers’ compensation policy the insurance carrier requires a down payment of around 1/4 to 1/3 of the total premium up-front just to get a policy in place. This amount is estimated depending upon the previous year or the previous three years payroll. In the landscaping business this can be a problem because the amount of man hours is dependent on a number of factors that are out of the businesses control. In most cases, with Pay as You Go Workers Compensation for Landscaping Businesses, a business owner can get a policy in place for little more than a few hundred dollars. This allows the business to free up additional cash that can be better spent on more immediate business needs.

Pay Premium in Real-time

As previously stated, a traditional workers compensation insurance plan is based off of an estimate from a previous years payroll. This can be extremely different than the current years staffing levels. This can cause a landscaping business to severely over or under pay for premium throughout the year. When you have over paid this might be a pleasant surprise after an end of term audit determines you get a refund. On the contrary if you under pay premium it can cause you to take on an unexpected cost. When a business goes with a Pay as you Go Workers Compensation for Landscaping Businesses, they pay the premium in real-time based upon the previous months actual payroll levels. This dramatically improves accuracy and frees up cash for other expenditures.

Less risk of being audited

Pay as You Go Workers’ Compensation allows business owners to pay their premium in real-time each month based upon the previous months payroll. They do this through a three way partnership between a payroll company, the insurance agency, and the landscaping business. This benefits all three parties involved because the payroll company keeps an accurate count of man hours worked each month, the insurance agency bills the landscaping company based upon an accurate payroll from the previous month, and the landscaping company is at less risk of being audited mid term for their payroll and insurance premium payments.

Frees up Cash

When a small business decides to go Pay as You Go Workers Compensation for Landscaping Businesses they are able to free up cash for two main reasons. First, because of the accuracy of your insurance payments there are less surprises at the end of the term due to over or under paying. Also, there is a lower up-front cost due to not having to pay up to a third of the premium just to get coverage in place. This is great for start ups and cash strapped businesses alike.

Tips for Home Health Care Agencies

Owning and operating a home health care agency can be complex. The clients you deal with can have a wide range of health issues you and your employees need to be familiar with. Some clients may be small and frail, but very mobile; while another client may be large and immobile. Some may have mental problems like dementia while other clients may have mobility issues like the aftermath of a stroke. With each of these clients comes a unique set of risks. These risks all determine what type of insurance you need and how much that insurance will cost. Here are three tips to help you the next time you shop for home health care workers comp.

Make sure you are classified accurately

For purposes of workers compensation insurance, governance of these programs is left up to the individual states. Most of the states partner with the National Council on Compensation Insurance (NCCI) to determine a classification code for each business and the rate of premium for each code. There are currently more than 700 different codes a business can be classified as. Each industry has multiple classification codes depending upon the scope and scale of the business. Depending upon the actions of your employees while on the job, the amount of premium is reflected through your businesses classification code.

Hire carefully

Unfortunately the home health care industry tends to have a high turnover rate. The two main reasons for this is the stress of the job and the amount of pay for most employees. In order to turn a profit, there is only so much a business owner can pay their employees in order to stay profitable. Because of this fact, it is difficult to keep the best employees around. This is a reason to hire carefully and for the long-term. Sometimes the candidate with the best resume is not as good for your business as the candidate who is the best fit for your business. Finding the best fit is different from business to business based upon the scope of the business and the market that business operates in. Taking additional time to hire the right person will almost always pay off in the long run.

Implement safety protocols

Safety programs are immensely important in the home health care industry. This industry has both a high volume of insurance claims and the claims can be high in severity. The reason for this is because many employees drive their own vehicle to a remote location and many drive to multiple locations throughout the day. The time that your employees drives from location to location makes the liability for accidents that occur the responsibility of the business. This is regardless of whether the employee is on the clock or not. It is important to consider implementing a driver safety program for your home healthcare business.

It is also important to implement safety programs for the time your employees are in the homes with clients. Depending upon the limitations of each client, your employees should be prepared to keep themselves safe first and keep the client safe second. Let them know that they cannot help the client if they do not take care of themselves first. Because of the remote nature of this work, it is important to have weekly face to face meetings with all employees and to discuss safety protocols with them.

Insurance Tips for Home Health Care Businesses

Residential Cleaning

How a Residential Cleaning Company Can Benefit From Pay as You Go Workers Comp

A Woman Working at a Residential Cleaning Company. Workers’ Compensation Insurance is required by law for businesses in most states. So is General Liability in most industries. For that reason, these two policies are the bare minimum coverage a business needs to be in business. Now for a cash-strapped, seasonal, or start-up business; coming up with the initial payment to get coverage in place can be difficult. Because of this issue, many carriers have come up with alternative payment options for these necessary coverages. The most popular alternative payment option is Pay as You Go Workers’ Compensation. One industry in particular that benefits from this option is the residential cleaning industry. Here are four ways residential cleaning companies benefit from choosing the Pay as You Go Option for Workers Comp Coverage.

Pay-as-You-Go has lower up-front costs.
Pay-as-You-Go frees up cash for more pressing business needs.
Pay-as-You-Go allows businesses to pay premium monthly.
Pay-as-You-Go prevents most audits

Residential Cleaning Companies depend upon their employees to keep their customers happy.

Lower Up Front Costs

When a cleaning company decides to go with a traditional workers compensation policy, they are required to make a large lump sum payment just to get coverage in place. They later have to make nine monthly payments at the end of the term. These payments are based upon an estimate of payroll from last year. If your business has plenty of cash on hand and your employee hours are regular from year to year this may not be much of a problem. Most residential cleaning companies do not have regular payroll or mounds of cash on hand. If this sounds like your business than the Pay as You Go Option is a great way to get coverage in place without tying up too much cash.

Frees Up Cash

Now if you are a business that is not rolling in cash, you may need to consider the Pay as You Go Option. This type of alternative payment method for workers comp coverage allows you to not only lower your up front costs, but it allows you to free up cash throughout the year by paying your premium in real-time each month based upon the accurate payroll from the previous month. This is instead of paying premium based upon an estimate of payroll from last year or the three previous years. This estimate can cause you to severely over or under-pay on premium.

Allows Monthly Payments

Allowing payments of premium each month can help your business in many ways. One of the best ways it helps is by keeping your payments accurate from paying them in real-time. When workers comp premiums are paid on an estimate basis, it can cause you to severely under or over-pay throughout the year. This gets cleared up whenever an audit takes place and an audit takes place at the end of each term, but if you under pay throughout the year it can cause your business to have a surprise payment at the end of the term. Even if you are one of the lucky businesses who over-pays and gets a refund at the end of the term, you still have had additional cash tied up in premium payments throughout the year. This is cash that could have been spent on more pressing needs.

Buying the proper chemicals is an essential part of any successful residential cleaning company.

Prevent Audits

An additional benefit your residential cleaning business can gain from choosing the Pay as You Go Option is to prevent audits mid-term. Because the payroll is calculated monthly by a payroll company it is accurate. This eliminates the need for a mid term audit because the payroll company is auditing the premium payment each month. The Pay as You Go Option also makes the end of term audit much more smooth because the payments have been done based on actual payroll each month. Your staff will spend less time gathering data to compare your actual payroll with the estimated payroll and premium payments based on that estimate. If you have ever underpaid premium and owed a significant amount at the end of the term, you appreciate the accuracy this program provides.

5 Industries who can benefit from Pay as You Go Workers Comp

Pay as You Go Workers Comp is a great program that many insurance carriers offer to help businesses get insurance in place without the burden of a large lump sum payment. For many businesses, it is not in their best interest to tie up cash in a large payment just to get a workers comp policy in place.

pay-as-you-go-workers-comp-insurance

Landscaping

Landscaping can benefit from a Pay as You Go Workers Comp Policy because of the seasonal nature of the work involved in landscaping. No matter where you operate, there are more than likely certain times of the year when a majority of the work is done. For most businesses, this is in the Summer when grass and other plants are growing like crazy. Even if you offer Winter Snow Removal Services, that time of year will more than likely be less busy than other times of the year. Pay as You Go will allow you to pay your premium each month based upon the previous months payroll.

Hospitality

The Hospitality Industry includes all businesses that cater to people who are travelling. This can include hotels, motels, bed & breakfasts, bars, and restaurants. The nature of this business is dependent upon the weather and the Summer Break from school. Because children are free from the daily routine of school, many parents decide to take them on vacations. While these people are on vacations they typically have lots of disposable income. Because of the seasonal nature of this industry, Pay as You Go Workers Comp can allow business owners to pay their premium during the busy time when they have cash on hand and pay less during the slower time of the year.

Construction

Construction is another business that because of the weather and the outdoor nature of the job, it has slow times. If these slow times are causing your business to have less cash coming in, Pay as You Go might just be a great option to help construction businesses keep coverage in place while keeping premium payments to a minimum.

Food Trucks

Food Trucks are booming in popularity all over the country. Most cities now have numerous Food Truck Friday Events and sporting events are beginning to see more and more trucks compared to just a few years ago. Because this business is located outside, it is somewhat dependent upon the weather. If the truck is located in a sports town, it can even be based upon the success of the professional teams in your area. With the Pay as You Go Option, you can pay a higher premium during the months when you have cash on hand and less when the business traffic is slow.

Farming

Farming is another industry that can be both seasonal and cash-strapped for several different reasons. Some family owned farms depend on government programs for part of their revenue. Those payments are usually sent out at one or a few times per year. During those times in between, some farmers may lack cash on hand to make large lump sum payments for things like commercial insurance. A Pay as You Go Option can help these family farms by allowing them to pay their premium monthly depending upon the work they do each month.

Relief is on the way for Missouri Businesses

On Friday December, 15th; The Missouri Department of Insurance announced it is recommending a 3% decrease in workers compensation insurance loss costs for 2018. This decrease comes on top of a 4% decrease that took effect in August of this year.

State of Missouri Flag celebrating a decrease in workers compensation insurance premium for 2018.

According to a release from the department of insurance, the decrease is driven by declining lost-time claim frequencies combined with stable average claim costs. According to a statement from Department of Insurance Director Chlora Lindley-Myers, “Missouri’s lost-time claim frequency has fallen since 2010, and average claim costs have stayed steady for the past several years,” This means the average claim cost is lower than in years past and the frequency of claims has gone down in recent years. Additionally, this will be the fourth consecutive year of declining comp rates in the state, according to a department statement.

Relief is on the way for Missouri businesses in the form of a decrease on workers compensation insurance premium in 2018.

Under Missouri law, insurance carriers are not required to follow the recommendations of the state or that of The national Council on Compensation Insurance (NCCI). Insurers may set their own rates based on NCCI’s recommendations, the department’s recommendations or their own analysis. In order to remain competitive, most insurers offering coverage in the state will change rates accordingly for most class codes. Now this does not necessarily apply to businesses across all class codes. Some businesses may see larger decreases depending upon the appetite of the carrier to quote that particular coverage and industry. If your business operates in a high risk industry, the decrease may not apply or may be a smaller amount.

Pest Control Insurance Needs

Pest Control Companies Face Unique Risks

Pest control companies provide services to commercial and residential customers who have problems with insects, rodents and other nuisances on their property. The fumigator or exterminator determines the type of pest and the most effective method of extermination. These methods should always be the method that will cause the least amount of disruption to the customer, regardless if the customer is an individual or a business. Because these businesses are constantly interacting with customers off-premise and the nature of the chemicals they are using, risks in this industry are high.

In order to manage risks properly, pest control companies need to have thorough training procedures for all employees. Those training programs should include safety programs to keep the employees and the clients safe at all times. In addition to adequate safety programs, pest control companies need to acquire adequate insurance coverage to protect the business from the unique risks each business faces. Here are six types of insurance coverage every pest control company should have.

Pest Control by Fumigation

Minimum recommended coverage for a Pest Control Company:

General Liability Insurance
Commercial Property Coverage
Business Personal Property Insurance
Commercial Auto Coverage
Inland Marine Insurance
Workers Compensation Coverage

General Liability Insurance for Pest Control

General Liability risks arise for pest control companies when employees travel off-premises in order to applying chemicals. Customers should be given proper instructions on controls regarding anyone or anything that could be exposed to hazardous materials while the application is going on. This is especially important for clients who have children, pets, sick and elderly individuals. In some instances, temporary evacuation is required during application. This may be followed by a waiting period and re-ventilation to replace the fumigant with fresh air.

Commercial Property Coverage

Commercial property risks depend on the type of property you own and operate as well as the types of chemicals being stored on the property. It also depends on the amount of these chemicals you keep on the property and whether or not those chemicals are flammable. Hazards increase if the contractor fails to store the chemicals properly in approved containers, cabinets and rooms, with accurate labeling and separation. Speaking long and honestly with your independent insurance agent is always the best way to properly protect your business. This conversation should include exactly what the employees of your business do on a daily basis, what is the condition of the property you operate, and exactly what chemicals you are storing on the property.

Business Personal Property Insurance

Business Personal Property Insurance provides coverage to small businesses for furniture, fixtures, merchandise, materials and all other personal property owned by you personally and used in your business. The best part about this coverage is that it is generally at replacement cost. Many business owners think this type of loss is covered by their commercial property insurance, but it is not. This coverage can and should be added to most BOP or CPP Packages if there is a need for this coverage.

Commercial Auto Coverage for Pest Control

Automobile exposure in the pest control industry is extremely high due to the amount of time employees spend in their vehicles travelling to clients locations. In addition, there is the fact that the employees are also transporting chemicals throughout their workday. Drivers in some states may need a hazardous materials (“hazmat”) endorsement to transport some chemicals used. Risks increase if the insured lacks spill control procedures and equipment.

Inland Marine Insurance

Inland marine exposures in the pest control industry come primarily from the contractor’s equipment and the transporting of that equipment, chemicals and supplies to the customers’ premises. Equipment is not highly susceptible to damage, but it can be hazardous to both your employees and clients. This equipment may include tarps, drills, measuring devices and other hand tools. The tarps and plastics used to enclose the areas to be fumigated may be bulky and require attention to folding and tying down. The chemical containers may be vulnerable to overturn or damage that causes leaking, which impacts the auto and premises liability exposures.

Workers Compensation Coverage

Workers compensation exposure can be high for the Pest Control industry. Common hazards include slips and falls during application; minor injuries while using hand tools; lifting injury and back injuries, hernia, sprain and strain. Employees can experience lung, eye, or skin irritations due to the chemicals. The impact of these chemicals can be immediate or long term. In some Pest Control companies seasonal employees may make safety a challenge. Loss potential becomes severe if the contractor fails to train and supervise employees properly. This is especially important when it comes to the proper use of protective gear by the employees.

Business Liability Category: Pest Control Contractors

SIC Business Insurance Codes:

7342: Disinfecting and Pest Control Services
2879: Pesticides and Chemicals—Not Classified Elsewhere

NAICS Liability Classifications:

561710: Exterminating and Pest Control Services
325320: Pesticide and Agricultural Chemical Manufacturing

Business ISO General Liability:

43860: Fumigators
43470: Pest Control Services

Common Workers Compensation Class Codes:

9014: Janitorial Services by Contractors (Florida—Exterminators)
4828: Chemical Blending and Pest Control Fumigation
9031: California Code—Pest Control—All Operations
0046: Massachusetts Code—Pesticide Application