You are here: Home / Archives for Workers Compensation Insurance

How Independent Contractors Benefit You

February 12, 2012 By

Independent contractors are a boon for employers. But sometimes knowing whether or not you have correctly classified your independent contractors for IRS purposes isn’t always easy.  Moreover, these kinds of workers also impact your business in ways that will require you to think carefully about the kind of insurance you will need to buy for your company.

An independent contractor is defined as an individual who contracts with a business to provide services for that organization. It’s important to know that this title should not be applied to individuals who are part of a department that has been outsourced to another firm.

Furthermore, it also important to be aware that an independent contractor does not have the legal status of an employee and can go by other names such as freelancer, consultant or simply contractor. When you hire a person who is part of another business operation, he or she could still be classed as an independent contractor.

Following are just a few of the reasons that more businesses are benefiting from the services of independents:

  • Technological advances – Computer technology allows for greater mobility than ever before and many jobs that once required an office setting to complete can now be done just as efficiently off-site.
  • Changing worker needs/demands – These days, workers want flexibility and greater work/life balance. They want to know the they can create schedules that conform with their lifestyle choices.
  • Cost effectiveness –  Because an independent contractor is not a regular employee, businesses don’t have to pay payroll costs such as federal payroll taxes, unemployment insurance premiums workers compensation premiums, overtime and employee benefits.

At the same time, you need to be aware that independent contractors require careful handling. You can still be held responsible for on-the-job injuries as well as complications arising from intellectual property issues. Finally, if you use independent contractors but treat them as employees, the IRS will require you to pay all back taxes owed with interest, plus a penalty.

If you are planning to hire contractors then your business needs both general liability insurance as well as a  workers compensation policy. Not having either one in place puts you and your business at risk for losses that may come about as a result of unforeseen events involving your contractors.

When you contact the brokers at Statewide Insurance, you can rest assured that you will not only be getting top-notch service but the best quotes on the best policies for your business. We know insurance like nobody else.  Let us show you the Statewide difference!

Photo credit: AscensionDigital
Call Statewide Insurance Brokers at (888) 258-0272 today for fast, free quotes on your insurance needs.
Filed Under: General Liability Insurance, Workers Compensation Insurance Tagged With: , ,

New California Laws Discourage Illegal Contracting Practices

January 8, 2012 By

California contractor laws

The changes in California law are intended to protect honest contractors.

The California State Assembly recently passed two measures intended to end the practice of what has come to be known as “black market contracting.” According to Aqua Magazine online, these laws specifically target contractors who “skirt workers compensation insurance.”

The first measure, AB 397, “requires contractors claiming workers’ compensation exemptions to recertify their status or supply proof of insurance whenever they renew their licenses.” The second measure, AB 878, “requires insurers to report client companies underreporting salaries to the Contractors State License Board (CSLB).”

Both laws are intended to address illegal contracting practices that have hurt consumers as well as “law-abiding contractors who have struggled to compete against those who cut corners by not properly insuring workers.” They also come at a time when the CSLB is cracking down on unlicensed contractors through sting operations. Aqua Magazine reports that in November, the Statewide Investigative Fraud Team (SWIFT) unit of the CSLB “arrested eight illegal contractors [in] Murrieta” and that “similar operations netted 113 violators in eight other cities.”

California is, of course, not the only state to face this dilemma, nor is the problem endemic to just one industry: “illegal contracting practices have [plagued a variety of] markets all over the country.” The recession that began in 2008 has only made the situation worse, especially in unstable economic climates like the one that has characterized the Golden State.

If you are a California contractor who is unsure if your own liability coverage meets the requirements, contact the experts at Statewide Insurance. They’ll help you understand the changes so that you can take care of your workers—and ultimately, your business—the right way.

Call Statewide Insurance Brokers at (888) 258-0272 today for fast, free quotes on contractor’s insurance.
Filed Under: California Workers Compensation Insurance Tagged With: , , , ,

California Independent Contractor Classification Law

November 14, 2011 By

Do you operate a business in California that retains independent contractors? If so, you need to be aware of a new state law that, according to the Monterey Herald.com, “penalizes businesses that ‘willfully misclassify’ employees as independent contractors.”

California workers comp

Knowing California independent contractor laws includes acquiring the proper liability insurance and workman's comp insurance if needed.

Under current law, businesses that engage in this kind of misclassification “are subject to consequences, including liability for payroll taxes, unpaid unemployment insurance contributions and penalties for failure to secure workers’ compensation coverage.” Moreover, “because the misclassified individuals have not been paid pursuant to wage and hour laws,” they are often entitled to overtime pay as well as compensation for “missed meal and rest periods.”

Many business owners believe that if they have an independent contractor agreement with the worker, they are in compliance with law. However, such an agreement alone does not necessarily determine whether a worker is an independent contractor. As the Monterey Herald.com further reports, “the most important factor is whether the business has control or the right to control worker as to the work done and the manner and means in which it is performed.”

Under Senate Bill 459, which will go into effect on January 1, businesses will be subject to hefty fines ranging from $5000 to $25,000 per violation if they:

  • willfully misclassify a worker as an independent contractor or
  • charge a person who has been “willfully misclassified as an independent contractor a fee or make any deductions for compensation.”

This new law interprets “willful misclassification” as “voluntarily and knowingly misclassifying” an individual as an independent contractor.

The message behind Senate Bill 459 is simple. If your California business uses independent contractors, be careful how your categorize them in your records: misclassification could cost you a bundle.

If you have independent contractors or operate a business yourself, be sure you are in compliance and secure the proper general liability insurance or workers compensation as needed. Call Statewide Insurance Brokers at 888-258-0272 for a fast, free quote!
Filed Under: California General Liability Insurance, California Workers Compensation Insurance Tagged With: , ,

Texas Workers Comp and the Exclusive Remedy Provision

October 11, 2011 By

texas workers comp statewide

Working in Texas? The workers comp rulings recently changed. Read about them here.

JDSupra.com reports this week that the Amarillo Court of Appeals has ruled that “the exclusive remedy provision of [the] Texas Workers Compensation statute also served to preclude contract-based claims against the employer arising under uninsured and underinsured motorist coverage.”

Simply stated, workers cannot claim more from an employer than what workers compensation offers, even if the employer has other forms of applicable insurance.

The judgment stems from a case involving a city of Lubbock employee who was injured when the vehicle that employee occupied “was struck by another vehicle owned and operated by an underinsured drunk driver.” While the city was covered by workers compensation and uninsured/underinsured motorist (UM/UIM) coverage, it also had a half-million dollar deductible under its UM/UIM policy.

The employee received workers compensation, but then attempted to collect money from the UM/UIM policy as well. After the insurer, St. Paul Fire and Marine Insurance Company, denied the claim, the employee filed a lawsuit. The court judged in favor of both the city of Lubbock and its insurer, but the employee appealed the decision.

The Amarillo Court of Appeals affirmed the previous judgment. According to its ruling, “if an employee suffers work-related injuries and seeks their redress from an employer that subscribes to a workers compensation program, there is only one [and that] is through [the] workers compensation program.”

Texas employers can now rest a little easier knowing that this latest court ruling lessens their chances of being taken advantage of by employees claiming more than their fair share of damages.

Get Texas workers compensation insurance quotes quickly from Statewide Insurance Brokers. Call 888-258-0272.
Filed Under: Texas Workers Compensation Insurance Tagged With: , ,

What is Workers’ Compensation?

August 10, 2011 By

workers comp statewide insurance brokers

Workers comp is vital for your employees, and your business

Workers’ compensation is insurance that pays medical care for employees who are injured on the job. Each state has its own laws and programs for workers’ compensation, but the United States government also administers a workers’comp program for federal employee as well.

When someone you hire signs a workers’ compensation form, that person gives up the right to sue you. In return, workers’ comp guarantees that if that individual becomes injured, disabled or ill on the job, he or she will be compensated for it.

What Does Workers’ Compensation Cover?

Workers’ comp typically pays for any hospital and medical expenses as well as days missed as a result of the injury/illness. Health problems or conditions that develop suddenly (such as a fracture that results from a fall) or over a long period of time (such as carpal tunnel syndrome) will usually receive coverage. Furthermore, an affected employee can get benefits for any job-related injury/illness that occur in the following instances:

  • during business travel
  • while doing a job-related errand
  • while attending a required business-related social event.

Claims can be filed regardless of who was at fault. Those causing injury/illness could include:

  • the employee
  • you the employer
  • a coworker
  • a client
  • a third party

Workers’ compensation is usually denied when the injuries/illness are:

  • self inflicted
  • incurred during off-work hours
  • incurred while the employee was committing a serious crime
  • the result of employee conduct that violated company policy

Examples of Workers’ Compensation Claims

Here are two situations that illustrate when an employee could file a workers’ comp claim.

CASE A: Visible/Verifiable Injuries

John Doe, a careful and conscientious employee, works in a factory that houses potentially dangerous equipment. On one particular occasion, John accidentally gets his hand caught in machine. He is on the clock and working in the factory when the incident occurs. His fellow workers stop the machine and free him. But now, he will need to have medical care to take care of his injury. Workers’ compensation insurance will reimburse John for his medical expenses and pay him for the days he needs off to recover.

CASE B: Invisible/Difficult to Verify Injuries

Jane Doe works in an office. Generally, offices are not highly hazardous work areas, but sometimes accidents can happen. Jane Doe claims that her back has been injured due to long periods of sitting at her chair and attempts to file a claim for workers’ compensation. Jane may have a justifiable claim. But if she is dishonest, she may try to get money and time off for a nonexistent injury. Sadly, some exaggerated–or in some instances, patently false–claims such as Jane Doe’s can actually be honored if they cannot be proven otherwise.

The cases described here are simple ones meant only to demonstrate the different kinds of injuries/illness that can occur at any time and in any type of working environment. Staying aware of what can happen and selecting workers’ compensation insurance that protects your employees while it also protects you are two of the most important things that you can do for your business.

To get a fast quote on workers’ compensation insurance for your business, call Statewide Insurance Brokers at 888-258-0272.
Filed Under: Workers Compensation Insurance Tagged With: , ,

Choosing a Good Minnesota Workers Insurance Agent

July 25, 2011 By

Minnesota workers comp insurance statewide insurance brokers

Whether you're in Saint Paul, Duluth or Minneapolis, selecting good workers comp insurance providers is vital. Let Statewide Insurance Brokers help.

In Minnesota businesses are required to carry workers compensation insurance. When looking for an insurance agent from which to purchase a Minnesota workers compensation insurance policy from, there are a few things to keep in mind to make sure that you get the best policy for your business.

  1. Make sure your agent specializes in Minnesota workers compensation insurance. While many agents offer workers compensation insurance in Minnesota, not all specialize in it. If your insurance agent is mostly selling auto insurance, chances are that their knowledge of Minnesota workers compensation insurance is rudimentary at best. When it comes to workers compensation insurance, you want to make sure that your policy is written by someone who has had experience crafting these types of policies in the past.
  2. Carefully choose your agent. Your insurance agent should be able to refer you to an agent who understands your type of business operation and who is financially stable and committed. You can also ask for a referral from a fellow business owner. Some insurance agents are direct writing agents, meaning that they are direct employees of the insurance company and will be limited to providing you only the coverage that their company offers you while an independent agent may be able to provide you with a variety of carrier options since they represent different insurance companies. You will have to determine which is best for you and your company.
  3. Ask questions. When you meet with the prospective agent, you should interview them. Ask them about their A.M. Best rating. A.M. Best ratings are given to insurance companies by an independent rating company, A.M. Best, and will tell you a lot about how the company does business. Companies with a rating of A or B should be considered, any lower and you should probably pass. You can also ask for their license number and check it with the Minnesota Department of Commerce.
  4. Shop around. You will also want to shop around and see who offers the best rates and coverages with their Minnesota workers comp policies. An independent agent is a good idea here, as they work with a number of insurance agencies and will be able to compare prices for you. Remember that if you work with a direct agent, you will only get information on the insurance company that they represent.
  5. Keep your policy up to date. Once you buy your policy, keep up to date on policy changes. Due to new legislation that is passed, insurance laws change. In addition, your business is not static and it to undergoes changes that may effect your worker compensation insurance. Make sure your Minnesota workers compensation insurance is up-to-date by contacting your insurance agent periodically to ensure that it is robust enough to keep you financially secure in the case of an on-the-job related injury.
For help in acquiring Minnesota Workers Comp Insurance, call Statewide Insurance Brokers at 888-258-0272.
Filed Under: Minnesota Workers Compensation Insurance

Keeping it Safe, Steps You Can Take To Avoid Work Place Injuries

July 13, 2011 By

California workers compensation insurance statewide insurance brokers

California requires workers compensation, so making your work place safe will save you money

Californians work in all sorts of environments, from the daunting heat of the SoCal sun to the cold and windy areas of the Bay Area. The elements, combined with human error, can, and at times does, result in work place accidents. California requires that businesses provide workers compensation insurance. Therefore, reducing injuries will benefit all involved, and work place accidents can be reduced by having employees follow a few safety guidelines:

Employee Training
All employees should be subject to regular training sessions. New employees should be fully briefed on all aspects of the business they can potentially come into contact with. They should be given a robust training session on workplace safety, including information on where first-aid supplies are located and who to contact in the case of an emergency. Supplemental training sessions should be held at least once a year to refresh everyone’s memory on good safety standards. Training sessions should also be conducted whenever new equipment is brought on-site or when new chemicals are being introduced into the workplace.

Proper Clothing and Shoes
All employees should wear clothing and shoes that offer them the maximum amount of protection for their job. This includes closed toed shoes, reinforced with steel if they are using or around heavy machinery. Clothing should offer the maximum amount of protection, such as thick jeans and long sleeved shirts for those working around flying debris. It is the job of the supervisor to make sure that employees are properly clothed for work and if they are not, they should be sent home to change.

Competent Supervision
There should be enough supervisors present to adequately oversee workers. There should always be someone on site supervising the project to ensure that everyone is working up to safety standards. Supervisors can help to catch mistakes that employees miss and prevent accidents before they occur. When there are too few supervisors it is easy for mistakes to be made. Supervisors should also be trained in safety standards and procedures and given follow up, refresher training courses annually.

Rules to Live By
Create a set of safety rules and have them posted. It is easy to forget safety procedures and standards once you leave the training room. Having them posted throughout the workplace and in the employee lounge will help them not to be so forgettable. You should also ensure that there are consequences for not following the rules. For example, sending employees home to change if they are not in proper safety work attire will cost them pay for the day.

Safety Goals
Give your employees safety goals to meet. Having incentives, such as days off with pay and gift certificates to local restaurants, will give employees extra incentive to be accident free. Meeting your safety goals will mean that you will have few chances to use your California workers compensation insurance, which means that you will be saving money as you keep your workers, and workplace, accident free.

If you need to provide workers compensation insurance in California, contact Statewide Insurance Brokers at 888-258-0272.

Filed Under: California Workers Compensation Insurance

FAQ: Employees And Job Related Injuries in Texas

July 8, 2011 By

Texas Workers Comp Statewide Insurance Brokers

Texas businesses and employees should be clear on workers comp rules and regulations

When employees enter the workplace, they have to understand that there is a chance that an accident may happen and result in personal injury. While employers take precautions to avoid these situations, such as creating safety standards, they also have to create a standard protocol for what to do when accidents occur. In addition, having Texas workers compensation insurance will ensure that your workers, and your business, are protected financially when accidents occur.

  1. Is workers compensation mandatory in Texas? Workers compensation is not mandatory in Texas. Texas businesses can choose whether or not to offer this benefit to their employees. Texas workers should be aware of the risks of working for a company that does not offer Texas workers compensation insurance. In the case of an on-the-job injury, the employee may have to take on the brunt of the medical bills as well as cope with the loss of salary from time taken off work.
  2. Who do I report my injury to and where do I go for evaluation and treatment? When you are injured on the job, you should immediately contact your human resources department as well as your immediate supervisor. If your Texas employer has Texas workers compensation insurance, you will most likely be directed to immediately report to the company doctor rather than your own personal physician. If the company does not have workers compensation insurance, then you need to see your own physician immediately. If you do not have insurance or a doctor, go to the emergency room at the nearest public hospital.
  3. Will I be allowed to return to work during the recovery from my injury? If your injury prevents you from performing your job, your company will most likely give you a modified work duty job. These programs are offered by many companies in order to aid in the recovery of the injured worker as well as mitigate the cost paid out by workers compensation insurance. As each business has its own policies regarding modified work jobs, so you will have to consult with your human resources department in order to find out the specifics of the program.
  4. What happens if my employer does not have Texas workers compensation insurance? Since Texas does not make workers compensation insurance mandatory for business, you may find yourself employed without it. If you are injured on the job and your employer does not have Texas workers compensation insurance, you can file a claim with the Texas Workers Compensation Fund if your injury causes you to miss work for more than seven days.
  5. Can I make a claim a Texas workers compensation along with a claim from my personal health insurance policy? If you have a personal health insurance policy, or have opted for a paid supplemental insurance policy from your employer, you may be provided with additional compensation for lost time. This is typically the allowed situation in most states including Texas. Keep in mind, however, that your health insurance carrier will want to seek to coordinate their benefits with the benefits of any other insurance available to you, including Texas workers compensation in order that you not be overpaid.
Filed Under: Texas Workers Compensation Insurance Tagged With: , ,

Workers Comp Insurance: Examples of Coverage

February 18, 2011 By

Statewide Workers CompIn the United States, workers compensation is something most everyone is familiar with. Workers comp insurance is a form of insurance that pays medical care for employees who are injured on the job.

How do you get this kind of insurance? Well, you normally sign a form during the run through of the human resources department of the company you’re employed by. The form states you legally give up your right to sue the company. In return, should you become injured or disabled on the job, you will be compensated for it and you will be paid for the days that you miss as a result of your injury. Below are a few examples to further explain this.

Let’s say John Doe is working in a factory that houses potentially dangerous equipment. He is careful most of the time and keeps in mind all possible dangers when operating the machinery. But, let’s say that on one particular occasion, John is careless and accidentally smashes his hand in a machine! He is on the clock and obviously working in the factory when the incident occurs. Of course the machine is stopped and he is freed. But, now he will most certainly need to have medical care to tend to his injury. Workers comp insurance will reimburse John for his medical care and pay him for the days he needs off to recover, if any.

Jane Doe has been working in an office for many years now. She has become disgruntled and tired of the same pay or office talk and began to purposely voice her opinion. She has stated how she needs more of a vacation and possibly more money for it. Generally, offices are not a highly hazardous work area, yet sometimes accidents do happen. However, our Jane Doe has stated that she is in need of workers comp insurance and time off because her back has been injured due to long periods of time sitting at her chair. Obviously, the claim is a direct attempt to get one over on the company. If this has been happening for some time, she simply needs to ask for a new chair.

Now, the latter is an example of where workers comp insurance will not be enforced. It’s obvious that Jane Doe wanted some time off and something extra to pay her medical expenses. While the examples above are a bit exaggerated, they can happen.

Both the real injury and the false claim can occur at any time with any business. Surprisingly, some of the false claims can actually be honored if no proof can prove otherwise.

Filed Under: Workers Compensation Insurance