Workers’ Compensation coverage is mandatory by State Statutes. There are a few options to exempt out of the coverage. If you do not have coverage, you may be subject to heavy fines and penalties.
There are two parts of a workers’ compensation policy. Part 1 pays the statutory benefits set forth by the state workers’ compensation law when a worker is injured. Part 2 is Employers Liability outside the statutory benefits. For this part, there are set limits stated on the policy.
Premium for a workers’ compensation policy is calculated on the basis of total payroll paid by classifications. The classification system is to group employers with similar operations. In addition to the basic premium calculation, the premium may be adjusted by other factors mandated by State Statutes and claim history.
We also have alternative programs and rating systems that may be appropriate for more sophisticated exposures.