Have you checked your workers’ compensation policy lately? It’s a good idea to compare your current payroll numbers against the number of employees you are covering under your policy.
Rules regarding workers’ compensation insurance vary by state. In Georgia, for example, you are required by law to have workers’ comp insurance if your business has three or more employees. In any case, adequate workers’ comp coverage is a must no matter where you do business.
Adding or losing headcount changes total payroll, and therefore, your workers’ comp costs. You need to make sure your workers’ comp policies reflect your current payroll numbers.
Some factors to consider:
Loss of employees: If your payroll fluctuated due to the COVID-19 pandemic, you may find that what you have been paying for workers’ comp no longer reflects your current payroll. You don’t want to overpay for coverage.
Hiring new employees: Many businesses are hiring right now to keep up with consumer demand. If you have added to your payroll, you are required by law to make sure that your workers’ comp policies reflect those numbers. Part-time employees who work on a regular basis are part of this requirement.
Remote or work from home employees: During the pandemic, many businesses have expanded their employee pool by allowing new hires to work from home or even from out of state. If you have added employees in states outside your domicile, you must make sure that those states are in included in your workers’ comp policies.
You will need to notify your commercial insurance agent about these changes because both your workers’ comp insurance and your general liability are impacted by where the work is performed. Be advised that you may encounter an unexpected increase in your rates.
If you have any questions or concerns about your business insurance coverage, please reach out to MarathonHR for answers and advice.