Workers Comp Insurance Needed!!!

[PrimaDonna]

We have had 3 claims in the past 4 years and our company (State Farm) has dropped us.

My insurance guy found another carrier (SWIF - Which is the State Plan for coverage) and the rate is going from $1697 a year to $2490 plus an "extra charge" for our claims history. Haven't heard what the extra charge amount is yet. He has a broker he's checking with as well.

Are there any industry specific workers comp companies that I should be looking into? Who do you recommend?

 

[JS41035]

How many full time people do you have ? That's not a bad price. I pay about that with zero claims. I make sure to do the yearly audits as they almost always save me money.

 

[PrimaDonna]

One lead tech and some part time people. We were a LLC with partnership and as of 1/1 we are an S-Corp, so now John and I will be drawing salary/payroll so it will change drastically. I anticipate it will go up greatly based on what my accountant wants us to take as salary. That would make us "employees" and subject to WC coverage.

 

[D Luke]

Can you exclude yourselves? Assuming you would take steps to be otherwise insured?

 

[PrimaDonna]

Not sure, it's a question I will be asking as we research this. I have a call in to Costco since we do our payroll through them, they partner with a company that offers WC.

 

[Desk Jockey]

Go with a broker. Our broker saved us 2k just switching us from one carrier to another.

 

[TomKing]

Can you exclude yourselves? Assuming you would take steps to be otherwise insured?

You can not exclude your self when you are an S-Corp. That is the point to make your self and everyone else employees to remove the personal liability from you to the company.

That is a great way to set things up take a reasonable salary. Make sure you are planning for your end of the year profits you need to be paying in quarterly estimated taxes to avoid a penalty.

 

[D Luke]

Yes you become an employee, but you're also an officer/shareholder, so I think it would be worth looking into the possibility of exclusions.

Not only for WC but also for Unemployment taxes.

Both are state (not Federal) requirements, so I'm assuming it's going to vary state-to-state.

I believe in MI corporate officers can choose to opt out of unemployment taxes (which obviously then precludes you from making a claim).

On the WC I would probably just suck it up and pay it, unless I already had fantastic medical and loss of income insurance.

 

[Desk Jockey]

If nothing else make sure that you (Meg) are down as office for the lower rate.