Could there be an exception for having less than three employees? Also, is there any way to get a break on the premium? We own a roofing business and the workers comp premiums are EXTREMELY high. Any ideas on how to lower them even a little?
I understand that if we were somehow able to avoid purchasing the insurance that we would have to let our employees know, and perhaps be ready to offer them health insurance. I'm just curious to know if this is even possible.
In PENNSYLVANIA, Are There Any Exceptions to the Law That All Employers Must Purchase Workers Comp Insurance?
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In PA you are required to have workers comp insurance, or you are considered to be illegal and you could end up with some hefty fines. The reason that your rates are so high is because of the nature of your business, it is somewhat considered to be an at risk business. The best thing you could do would be to talk it over with your agent and see if there are any companies out there that could give you a lower rate, should be able to work something out if you have a low rate of work related injuries.
In PA, it’s not the NUMBER of employees that counts – it’s what type of work they are doing. Example: if you have a domestic worker come in (aka, maid) you do NOT have to provide them with coverage. Also exempt are KEY PERFORMERS, that work on stage, such as when Pavarotti would come in for a show.
PA is NOT an NCCI state, so it’s one of the oddball states.
Seeing as how you have three employees doing roofing, I’m assuming your premium is well over $5,000. There is such a thing in PA as a Safety Committee Credit – which saves you 5%. Your agent should have told you about this, and they can ALSO help you set it up. It’s only good for three years, though, so if you’ve already used it, well, sorry!
Another option is a deductible, but I NEVER EVER recommend it – any losses under the deductible, you pay, but they still count against you for experience rating.
Lastly, regarding the health insurance – in PA, most health insurance policies won’t cover an injury that is “workers compensable” – which means, if it CAN be covered by workers comp, they won’t pay it, even if there isn’t any workers comp in place. But you’ll have a darned hard time finding anyone to give you a group policy, without wc in place – lots of companies have tried it, and the health insurance companies are “on to” that little trick.
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