Frequently Asked Questions
General
Workers’ compensation insurance (often called workers’ comp) protects your employees and your business in the event that an employee is injured or contracts an illness at work. It helps pay for medical care and lost wages associated with work-related injuries.
Although workers’ compensation insurance provides broad coverage for work-related injuries and illness, there are some exclusions. For example, injuries outside of work aren’t covered, and commuting to and from work generally isn’t covered, though there may be coverage in some states. Also, intentional injuries and those occurring as a result of substance abuse or intoxication aren’t covered.
Policies are specific to a household and NOT specific to a caregiver. This means that you can change a caregiver throughout the year and not have to set up a new policy. We just ask that you let us know, in case we need to check a driving record.
Unfortunately, we only offer 1 year policy terms.
Workers’ compensation is unique in that there are no limits for the benefits. This coverage is designed to make the injured worker whole in both health and income.
Workers’ Compensation coverage is a one-size fits all type of policy in that the coverage itself is the workers’ compensation statue in which the claim applies. This means there is an unlimited medical expense payout and specified statutory lost wage benefit when an injury occurs.
Yes, we need a Federal Employer Identification Number (FEIN) established for the household to be able to offer you a quote/policy with the insurance company. Workers’ Compensation policies are filed with the state and the carriers distinguish amongst other insureds through the FEIN number. Also, it shows there is a clearly established dynamic of an employer/employee, which is needed for the workers’ compensation policy to respond.
There are a couple ways of getting this FEIN:
- Engage a payroll company who, for a fee, can set this up and handle state and federal payroll taxes a filings.
- Do payroll and taxes yourself and get with the IRS to establish an FEIN.RS to establish an FEIN
- Since our clients are domestic employers, they are unique business models that do not fit the traditional mold of workers’ compensation purchasers. As a result, we had to develop a white glove service model to meet their specific needs.
- We removed the audit process on most nanny and housekeeper policies (see FAQ “What is an audit?”). Which is a time consuming and confusing process for our clients.
- In addition, we have removed many of the underwriting questions the carrier needs for traditional workers’ compensation policies. Due to the nature of our relationship with the carrier and our industry experience, we were able to negotiate the clients to answer a few questions to satisfy the carrier underwriting requirements versus the many that a typical business owner would have to complete.
- With our technology partner, we were able to create an online application and payment platform that feeds directly to the carrier. Other sites may have an online application, but our site is direct and real-time. This allows the client to see accurate pricing, policy status notifications and renewal information.
- We can offer reminders on renewals and necessary follow up items to ensure clients complete needed items to be in compliance with the carrier.
- Allows us to build relationships with payroll vendors that create efficiencies for our clients in terms of information needed to complete applications (limits dual entry for them).
- Allows for an Underwriting and Policy Service Team dedicated just to this program. When you call, the team that answers only works with clients like you so they understand your unique situation.
Nanny
Yes, coverage is tied to the employer/household and not the employee. So, if a nanny is injured on the job, they could make a claim against both families. It seems unfair, but each policy will only cover their appropriate share of the claim. The nanny will not “double dip”.
You are eligible to cancel your policy early. Often, the minimum premium on the policy is very close to the annual premium you are paying though. The carrier follows the cancellation rules set by the state, so it is likely that there will be little, to no, return of premium.
Yes. These policies are typically minimum premium policies with the carrier. Due to that, clients are only allowed to pay in full.
- An audit is the way an insurance carrier confirms the premium they collected throughout the year matches with the risk they covered. With a nanny workers’ compensation policy, that audit confirms the amount of nannies employed throughout the year at any 1 time.
Senior Caregiver
At a high level, the amount you pay for workers’ compensation insurance is based on your total payroll, multiplied by a rate that is set by the state. A workers’ comp audit is an industry-standard process that helps ensure you’re paying the correct amount. It involves sending us documents that we request so that we can evaluate them. After the evaluation, one of three things will happen:
- If the actual payroll is more than what was on the application, you could owe more.
- If the actual payroll is less than what was on the application, you could receive a refund. Subject to the state minimum.
- If your actual payroll was accurate to the application, within a 5% variance, you will neither owe or be refunded any premium.
- If you give us approval, we could work with your payroll vendor and assist.
Premium is calculated by taking the salary you will pay your employee(s), dividing by 100 and then multiplying by the state rate. You then add some taxes and fees to arrive at your total premium.
Please call or email Clarke White and his team. They will assist you in canceling the policy so that you do not get charged any additional premium.
