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My Worker's compensation insurance
has lapsed - what to do?
Q: My Worker's compensation insurance has lapsed - what to do?
A: Worker's Compensation laws vary state by state, but the first thing I recommend is that you purchase new coverage immediately! As worker compensation coverage is a statutory requirement in almost every state when you employ a certain number of persons, either full or part-time, you may be subject to stiff penalties should an uninsured loss occur.
As for the past, you need to explain your situation to your insurance agent. Coverage cannot be written retroactively, so you won't be charged for the time you had no coverage. And if you had no loss, you just need make a new start!
Workers Compensation premiums are based on the payroll earned by employees during the policy period (usually one year). Rates are determined type of work performed. Widget makers are charged a different rate than clerical help, for example. You will need to know what your estimated annual payroll (coming year) will be for each type of work being performed at you business. This will help your agent in determining your estimated annual premium.
Worker's Compensation is a pretty straightforward type of coverage. It provides payment for all work-related injury medical bills, rehabilitation, and provides a certain amount of "income" after a waiting period (usually 7 days). It provides a death benefit, as well.
Your insurance agent can explain this coverage as it relates to the laws in your particular state.
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