Get covered for workers' comp now... or pay later.
Worker's compensation isn't just a good idea that protects both you and your business, but to a lot of people, it's annoying with forms they want to fill out and bill they don't want to pay. It's not like the state's going to notice your business doesn't have one type of insurance, right?
"Wrong," Pablo Conde, a forty-year veteran of the insurance industry tells us when we asked him exactly that question. "Businesses that go without get caught." Here's what Conde explained to us, and what to do if you get caught.
"Wrong," Pablo Conde, a forty-year veteran of the insurance industry tells us when we asked him exactly that question. "Businesses that go without get caught." Here's what Conde explained to us, and what to do if you get caught.
The Bill Always Comes Due
While how worker's compensation is enforced varies widely from state to state, Conde told us the one consistent factor is that you will get caught and you'll have to pay. "How far back the audit will go depends on the state. In Florida, it used to be three years and they recently changed it to one and a half," Conde explained, but no matter what, "you're going to have to pay for that insurance and also pay any penalties."
And no matter what you've heard, your coverage doesn't automatically apply across all businesses. Conde laid it out for us: "There's some incidences that I've seen where somebody will have a few companies, and one will not have the right coverage. The state sends a stop work order, and somehow the policy shakes out so that all the companies are covered." But as Conde notes, that's extremely rare and it's not necessarily something you should count on. And if you were hoping that an insurance company would give you retroactive coverage, Conde's rather concise: "That's not going to happen," he tells us with a laugh.
And no matter what you've heard, your coverage doesn't automatically apply across all businesses. Conde laid it out for us: "There's some incidences that I've seen where somebody will have a few companies, and one will not have the right coverage. The state sends a stop work order, and somehow the policy shakes out so that all the companies are covered." But as Conde notes, that's extremely rare and it's not necessarily something you should count on. And if you were hoping that an insurance company would give you retroactive coverage, Conde's rather concise: "That's not going to happen," he tells us with a laugh.
This is the last time you want to be without coverage.
Get Covered
If you're caught, the first step is to get into compliance, Conde informs us: "Getting back to work is the most important step." Conde recommends calling an insurer and being honest about your situation: "Look for somebody who understand your industry, who uses industry terms and has an idea of what you do." Be clear about your situation and be ready for a little bit of sticker shock. As Conde notes, not being properly covered in the first place marks you as more of a risk than someone who takes the time to make sure they're in compliance. Just remember that you can get insurance no matter what. "You may pay more," Conde points out, "but you can get covered. Usually what happens is they may not offer you their best terms, but you're still going to get the coverage."
The Best Way To Not Get Caught
However, the best way to not get caught in the first place is to not have something to be caught for. Conde says it's quite simple: "Pay now or pay later." Remember, worker's compensation isn't just about filling out paperwork and an expense line item: It's about protecting your business from liability and ensuring your workers have the coverage they need in case they're injured. So don't put it off; get the coverage you need today.
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