When The Bill Comes Due
It varies from state to state how and when the policies are enforced, but sooner or later, if you try to get by unnoticed, you're going to appear on someone's radar, and it is going to cost you. As Conde noted, it's one of the few things you can count on when it comes to workers' compensation coverage: "If you've got four employees and they're not covered, you're going to have to pay for that insurance and also pay any penalties."
What Happens First?
But there is a limit to what an insurer can do for you; don't expect any sort of retroactive coverage, despite what you may hear or what an agent might promise you. "Nobody's going to backdate your policy for years," Conde explained. "Unfortunately, we have some agents that don't give out clear and precise information, and some people don't understand what they're saying. We deal with those issues on a daily basis."