Workers’ Compensation insurance (“Workers’ Comp”) is a mandatory type of insurance carried by many businesses. Workers’ Compensation insurance covers medical costs and a portion of lost wages for an employee who becomes injured (or ill) while on the job. Workers’ comp insurance also protects companies from being sued by employees for workplace conditions that can cause an injury or illness.
Workers’ Comp insurance is required by law in almost every state (typically if you have more than 3 employees). Workers’ comp laws are designed to ensure payment by employers for some part of the cost of injuries, or in some cases, of occupational diseases, received by employees in the course of their work.
It is important to note that Workers’ Compensation is an auditable policy. This means, that the initial premium is based on your estimated payrolls for the upcoming policy period. At the end of the policy period, an audit is typically performed to ensure the premium reflects the actual payroll amount. State laws and other governing bodies require the policy be audited to ensure employers are paying for their actual exposure. Differences between the estimated information and the actual information obtained through the audit may result in payment of an additional premium or a premium refund. In addition, the payroll on your current policy may be adjusted to reflect the updated information.
CoSaint also offers a “pay as you go” solution that reduces the burden of the audit process. In these situations, you will submit your actual payroll information each period and your Workers’ Comp premium is adjusted real-time. Speak with your CoSaint agent to learn more about the best solution for your Workers’ Compensation needs.
