Question 1

How can I reduce my claims risk?

Accepted Answer

To reduce your claims risk, you could start with implementing a safety program and accident prevention training. For more help and information, please visit our handling claims section of the website here.

Question 2

I’ve been told my Workers’ Comp policy is an auditable policy. What does that mean?

Accepted Answer

Workers’ comp policy price is largely based on your payroll over your policy period. We understand that over the course of your policy period, changes occur…life happens! After your policy period ends, a payroll audit will be conducted by Cerity to verify actual payroll & classifications to determine the final premium.

Question 3

What do I need to do to implement a safety program in my workplace?

Accepted Answer

Put simply, establishing and maintaining a safety program with your team may reduce losses, which reduces your workers’ compensation premium over time.

Question 4

How is Workers’ Compensation related to payroll? What do I do when I hire, give raises or fire employees?

Accepted Answer

The estimated premium is based on estimated payroll (at the beginning of the policy). The final premium is based on actual payroll (at the end of the policy) for the policy period (usually 12 months). If you have a significant changes to your payroll, call us and we’ll update your payroll midterm. Smaller changes like raises and bonuses and can wait until the end of policy term audit.

Question 5

How much does Workers’ Compensation Insurance cost?

Accepted Answer

The cost, or premium, varies depending on the jurisdiction your business is in as well as the nature of your business or operation. At Cerity, in order to determine an affordable price for your business, we evaluate your company’s specific operational history and your business’ payroll.

Question 6

I subcontract work to other companies/firms. Do I need to check if they are complying with Workers’ Comp laws?

Accepted Answer

Yes, if you subcontract some of your work to other businesses or individuals, you should always ask them to provide a Certificate of Insurance to ensure they are covered. However, a Certificate of Insurance (COI) isn’t a guarantee of coverage (policy may have cancelled since issuance). You should request periodic COIs throughout the contract.

Question 7

What does Workers’ Comp Insurance cover?

Accepted Answer

Workers’ compensation insurance provides all state required benefits, including reasonable and necessary medical treatment and wage replacement, for employees injured in the course and scope of employment.

Question 8

What happens if I don’t have Workers’ Comp Insurance?

Accepted Answer

If you, as a business owner, do not obtain workers’ compensation insurance for your business, you may expose your business to a multitude of risks including potential lawsuits from injured employees, penalties for failing to obtain statutory coverage per state law, permanent closure of your business, and a variety of fines.

Question 9

Why do I need Workers’ Compensation Insurance?

Accepted Answer

In most states, it’s required for small business owners to obtain workers’ compensation coverage. In the event that an employee is injured in the course and scope of your employment, workers’ compensation insurance protects you from costly lawsuits and provides state required compensation for the employee, including lost wages and medical expenses.

Question 10

What is Workers’ Compensation Insurance?

Accepted Answer

Workers’ compensation is a form of business insurance which provides state required benefits to employees injured in the course and scope of employment, including wage replacement and medical benefits. It also protects your business from liabilities resulting from injuries arising in the workplace.

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