Workers Compensation Insurance is normally referred to as Work Comp. In several States, Workers Compensation Coverage also extends to include Employers Liability coverage. Most States require employers to secure workers compensation through insurance carriers to meet their State ordered mandates.
This insurance has more variables than other types of insurance as each State Department of Insurance has specific requirements as to the rating, class codes, and credits available for insurance carriers to apply. If your business operates in more than one State are you sure your policy is set up to include each State and required class code?
Many insurance companies that provide workers compensation insurance have exclusion in their operating guidelines for aviation exposures. This limits the marketplace that will provide insurance to aviation operators. AvQuest Insurance Service represents all of the major insurance companies that provide workers compensation coverage to aviation operators. This allows our clients the best opportunity to find competitive insurance programs. No matter your type of operation; commercial, fixed and rotor wing flight schools, aerial application companies, and repair shops / manufacturers we can provide workers compensation.
When setting up workers compensation policies getting the employees rated in the correct category (class code) can have a significant effect on the premium paid. Our licensed brokers are experienced in working with the client to guide them through the different categories in properly setting up their insurance program.
There are a few exceptions to the requirement for Workers Compensation coverage. There are currently four states which are “Monopolistic State Funds” which means you pay the State Labor Board a fee for each dollar of payroll, these States are: Washington, Wyoming, North Dakota, and Ohio. The second exception is the State of Texas, which allows employers to provide 24-hour health insurance that includes both standard health insurance and coverage for workplace injury.
State laws change regularly and AvQuest Insurance Service works hard to stay on top of all pending and changing legislation. As an example, effective January 1, 2017 California law AB 2883 recently changed their exclusion guidelines for “non publicly traded” companies to ONLY allow officers who own a minimum of 15% of the company to be excluded from coverage. Previously the requirement allowed for any owner and / or officer to be excluded from workers compensation coverage with a signed document. However, the changes in the law now requires the person be an officer and own a minimum of 15% in order to elect exclusion. This could cause a spike in insurance costs as officer and owners previously excluded now must be included.
Please contact one of our licensed insurance professionals to assist you in the placement of your Workers Compensation insurance program!