A workers compensation insurance policy protects a business and its owner(s) from claims and lawsuits by employees who experience a work-related injury, illness, or disease – either sustained while working or due to business operations. Workers compensation insurance also assures that an injured worker is provided medical care as well as compensation for a portion of the income they would lose while they are unable to return to work.
Employers have a legal obligation (based on state requirements) to have a workers compensation policy to ensure their employees are covered when accidents happen.
The workers compensation benefits are provided regardless of who was at fault in the accident. In the unfortunate event of a catastrophic accident, for example, if a worker is killed while working, workers comp also provides death benefits for the worker’s dependents.
Employers Liability covers an employer’s common law or tort liability for employee injuries that fall outside the scope of the state laws or acts. This liability is separate and distinguished from the liability that workers compensation laws imposed.
Workers compensation insurance must be purchased as a separate policy. While Business Owners Policies (BOPs) are sold as a package, they do not include coverage for workers injuries.
The policy consists of the Information Page, the coverage form, all endorsements and schedules at the policy inception. This is an insurance contract between your company and the insurance company. It includes all agreements that relate to the insurance and can only be changed by written endorsements the company issues.
Other Business Insurance Policies to Consider
One of the main components in calculating your workers’ compensation premium is the experience modification factor, often referred to as the experience mod or mod factor. The experience modification factor is unique to each company and is based on a number of factors. In calculating the experience mod factor, your company’s claims experience is compared to the experience of other employers of similar size and business type.
The mod factor, when used in the calculation of premium, represents either a credit or debit that’s applied to the workers’ compensation premium. A mod factor greater than 1.0 is a debit mod, which means that losses are worse than expected and an increase will be added to the premium. A mod factor less than 1.0 is a credit mod, which means losses are better than expected, resulting in a discounted premium.
Who calculates the experience modification?
The National Council of Compensation Insurance (NCCI) calculates the experience mod for most states. The NCCI State Map is a convenient reference of states whose insurance departments have designated NCCI as the licensed rating and statistical organization. The information on experience modification in this article is based on NCCI.
States that don’t use NCCI have their own rating bureaus, which have some form of experience rating built into the calculations. Four of those states – North Dakota, Ohio, Washington and Wyoming – are monopolistic states. A monopolistic state requires workers’ compensation coverage to be provided exclusively by that state’s designated workers’ compensation program. Insurance through private insurance companies isn’t allowed.
What data is used in the calculation of the experience mod?
There are many variables that go into the calculation of the experience mod. If you would like detailed information on how the mod is calculated, please see NCCI’s ABC’s of Experience Rating. Some of the most important variables are the frequency, severity, payroll, classification codes and whether the claim is an indemnity (lost-time or impairment rating) or a medical-only claim.
Frequency – This is a reflection of the safety program and the management controls in place. To have frequency increase the mod faster, NCCI uses what is called a split point. The split point breaks claims into primary and excess losses. For many years (through the end of 2012), the split point was $5,000. NCCI proposed an increase to the primary/excess split point to an inflation-adjusted $15,000 over a three-year transition period, and an annual increase to this amount using a countrywide inflation index. Currently, the primary is the first $13,500 of a claim for 2014, increasing to $15,000 for 2015 and then adjusted for inflation yearly starting in 2016.
For example, if we used a claim whose accident year was 2014 and the claim was $25,000, the first $13,500 would be primary loss and the remaining $11,500 would be excess loss.
Severity – This is represented by the portion of the claim that is over the primary split point, or the excess portion of the claim. For 2014, this is anything in excess of $13,500. Each state also puts a cap on large claims, which can be as low as $150,000, or as high as $400,000. A significantly large claim will have only so much impact on the employer’s mod. Excess losses represent severity in the calculation.
For example, in a claim with a dollar amount of $600,000, the first $13,500 is primary and the claim is capped at the state’s large-claim cap. If the state’s large-claim cap is $300,000, the excess on the claim is $286,500. The remaining $300,000 would not be used in the employer’s loss data.
Classification codes – This is a three or four-digit code assigned by NCCI or a state rating bureau. Classification codes help differentiate between the various job duties or type of work performed by employees. Each classification code has a rate attached to it. Higher hazard classification codes have a higher rate than the lower hazard classification codes. Rates are different for each classification for each state and are based on the loss history in that state. The classification system contains more than 700 unique codes.
Medical vs. indemnity claims
Mod calculations reward employers who provide light-duty jobs or have a return-to-work program. When information on claims is sent to NCCI by insurance carriers, the information on the claim has an injury code that represents the severity of the claim. The nine injury codes include:
In approved states, when a claim is medical only (no lost-time or disability payments), the calculation of the mod reduces the value of the claim by 70%. For example, if you have a $10,000 medical-only claim, the claim is reduced by 70%, or $7,000; only $3,000 is used to calculate the experience mod. For a lost-time claim, the entire $10,000 is used to calculate the experience mod; this is called an experience rating adjustment.
The following states have approved the experience rating adjustment: Alaska, Alabama, Arkansas, Arizona, Connecticut, District of Columbia, Florida, Georgia, Hawaii, Iowa, Idaho, Illinois, Indiana, Kansas, Kentucky, Louisiana, Maryland, Maine, Michigan, Minnesota, Missouri, Mississippi, Montana, North Carolina, Nebraska, New Hampshire, New Mexico, Nevada, Oklahoma, Rhode Island, South Carolina, South Dakota, Tennessee, Utah, Virginia, Vermont, Wisconsin and West Virginia.
The key to controlling your experience mod – and ultimately your workers’ compensation premium – is accident prevention and controlling costs after an accident happens. Preventing accidents involves having good safety programs and enforcing those programs with your employees. Controlling costs involves:
Workers’ compensation provides some level of coverage for medical expenses and lost wages for employees or their beneficiaries when an employee is injured, falls sick, or is killed as a result of their job.
However, if an employee decides to sue their employer for punitive damages such as pain and suffering due to WC not adequately covering their loss or negligence, Employers Liability Insurance policy can help limit their losses by including, as a condition of the payout, a clause that releases the employer and their insurance company from further liability related to the incident in question.
In many states, Employers liability insurance in included in a Workers Compensation policy.
The main difference between workers comp and Employers Liability is that workers compensation applies to statutory benefits the named insured must pay. Employers liability applies to common or tort law or other damages for which the named insured is liable.
Employers’ liability coverage is designed to cover expenses not covered by workers’ compensation or general liability insurance. In the event of a payout under an employers’ liability insurance policy, an employer can help limit their losses by including, as a condition of the payout, a clause that releases the employer and their insurance company from further liability related to the incident in question.
Even with adequate employers’ liability insurance coverage, claims can become complicated and costly for employers, particularly in the case of a lawsuit. The cost of defending against such a suit itself can be a major financial loss.
The factors used to determine the cost of a workers compensation policy include, the industry and associated class codes, experience rating, loss trends, carrier appetite for specific industries, safety protocols and other certifications that provide further assurance that a business is a good risk.
Alabama
NCCI state. Employers with more than four employees (full or part-time) must have Workers Comp insurance (or obtain coverage via another approved method.)
Alabama Department of Insurance
201 Monroe Street, Suite 1700
Montgomery, AL 36104
Phone: 334-269-3550
Fax: 334-241-4192
[email protected] – Regarding Insurance Questions
Website: www.aldoi.gov
Arizona
NCCI state. Arizona requires all employers with one or more employees to maintain valid Workers Compensation insurance (or be approved for self-insurance.)
The state agency with jurisdiction over claims, and over employer compliance with Workers Compensation insurance requirements, is: Arizona Industrial Commission
Insurance disputes (such as disputes over proper Workers Compensation insurance premiums) are the jurisdiction of:
Arizona Department of Insurance
2910 N. 44th St. Suite 210
Phoenix, Az. 85018-7269
Contact Information
Arkansas
NCCI state. Most employers with three or more employees must purchase Workers Compensation insurance. For employers in the building trades, the threshold is two or more employees.
Where a subcontractor is used, the threshold is one employee.
Sole proprietors or partners who devote full time to the business are covered unless they elect to be exempted. (This is different than in many other states, where sole proprietors and partners are not automatically eligible, and must elect to be covered.) Executive officers of a corporation may choose to exclude themselves (but must cover employees.)
In Arkansas, if a sole proprietor or partner elects not to obtain Workers Compensation coverage for themselves, a primary contractor that utilizes their services is not liable for the Workers Compensation liability (this is different than the way this issue is treated in many other states.) However, a prime contractor would still be liable for uninsured workers of a subcontractor if those workers are not the sole proprietor or a partner.
The government agency in Arkansas that has jurisdiction over claims and over enforcing employer compliance with Workers Compensation coverage is:
The Arkansas Workers Compensation Commission
324 Spring Street
P.O. Box 950
Little Rock, Arkansas 72203-0950
Telephone 1-501-682-3930 / 1-800-622-4472
The government agency in Arkansas that has jurisdiction over disputes regarding Workers Compensation insurance premiums between employers and their insurance company is:
Arkansas Insurance Department
1200 West Third Street
Little Rock, AR 72201
(501)371-2600 or 1-800-282-9134
California
Not an NCCI state. Instead, California, which is the largest single state market for Workers Compensation insurance, has its own separate rating bureau, the Workers Compensation Insurance Rating Bureau of California, or WCIRB. This means that all the rules and regulations that govern Workers Compensation insurance classifications, premium computation, and experience rating are set out in manuals from WCIRB, not NCCI. And thus the details about what kinds of work are assigned to which particular classification codes can be different in California. And some of the fine details regarding how experience modification factors are calculated are different also.
Contact information for the WCIRB is:
Workers Compensation Insurance Rating Bureau of California
525 Market Street, Suite 800
San Franscisco, CA 94105-2767
Phone: 888.CA.WCIRB (888.229.2472)
Fax: 415.778.7272
E-mail: [email protected]
Employers in California can choose between private insurance companies or the state-administered Workers Compensation fund, known as the State Compensation Insurance Fund, or SCIF. An employer in California can also elect to self-insure for Workers Compensation, but this is typically feasible only for larger employers.
In California, as soon as an employer has a single employee, the employer must have Workers Compensation coverage (either from an approved insurance company, SCIF, or be approved for self-insurance. A roofing company is required to have Workers Comp insurance even if it has no employees. And unlike many other states, a real estate broker is required to cover its agents, even if they are independent contractors.
Contact information for the division that handles premium disputes is:
California Department of Insurance
Colorado
This is another NCCI state. Colorado used to have a competitive state fund, but that state fund has been transformed into an insurance company that competes with other insurers.
In Colorado, all public and private employers with one or more full or part-time workers must either purchase Workers Compensation insurance or be approved for self-insurance (which, as in most states, is only feasible for larger employers.) There are a few exceptions to this, including:
A corporate officer is defined as the chairperson of the board, president, vice-president, secretary, or treasurer who is an owner of at least ten percent of the stock of the corporation and who controls, supervises or manages the business affairs of the corporation.
A member is defined as an owner of at least ten percent of the membership interest of the limited liability company at all times and who controls, supervises, or manages the business affairs of the limited liability company.
Independent contractors are not considered to be employees of a business that hires them, as long as they meet the following criteria:
The independent contractor is free from the business’ control and direction over how the service is performed; and the individual must be customarily engaged in an independent business related to the service being performed.
These are the two key principles of independent contracting in Colorado. A written contract may be helpful in proving independent contractor status. However, the actual facts of the work relationship are the most important evidence.
Sole proprietors and partners in a business are not required to carry Workers Compensation insurance on themselves (but would be required to carry insurance as soon as they have any employees.)
Workers Compensation insurance premium disputes are the jurisdiction of:
Colorado Division of Insurance
Connecticut
Another NCCI state. All employers are required to either carry insurance from an approved insurer, or to be approved as a self-insurer by the CT Workers Compensation Commission.
Workers Compensation Commission
Capitol Place
21 Oak Street
Hartford, CT 06106
Phone: (860) 493-1500
Fax: (860) 247-1361
Website: http://wcc.state.ct.us/
Disputes over Workers Compensation insurance premiums are handled by the Connecticut Insurance Department.
Connecticut Insurance Department
153 Market St.
Hartford, CT 06103
Mailing Address:
P.O. Box 816
Hartford, Ct 06142-0816
Phone: (860) 297-3800 (
800) 203-3447
Fax :(860) 566-7410
Delaware
Employers with one or more employees are required to carry workers’ compensation insurance.
Farm workers are exempt from the workers’ compensation statute, however, these employers may elect to provide coverage.
Delaware and Pennsylvania share a unique non-NCCI classification system which does not match up one for one with the NCCI classification system.
Additionally, the premium portion of payroll is not deductible for purposes of calculating Workers’ Compensation premiums.
Insurance is regulated by:
Office of Insurance Commissioner
841 Silver Lake Blvd., Rodney Building
Dover, DE 19904
302-739-4251
www.delawareinsurance.gov
The non-NCCI rating bureau is:
Delaware Compensation Rating Bureau
Workers’ Compensation is regulated by
Office of Workers’ Compensation
State Office Building, Sixth Floor
820 North French Street
Wilmington, Delaware 19801
District of Columbia
The District uses NCCI manual rules.
Workers Compensation insurance premium issues are under the jurisdiction of:
D.C. Dept. of Insurance & Security Regulation
810 First Street, NE, Suite 701
Washington, DC 20002
But Workers Compensation claims are under the jurisdiction of:
Office of Workers’ Compensation
1200 Upshur Street, NW
Post Office Box 56098
Washington, District of Columbia 20011
Florida
Florida is also an NCCI state, so premiums, classification codes, and experience modification factors are per the manual rules of the National Council on Compensation Insurance.
In Florida, non-construction employers must obtain valid Workers Compensation coverage once they have four or more full or part-time employees.
But employers in construction work must obtain Workers Comp coverage once they have one or more part-time or full time employees.
Sole proprietors and partners in the non-construction industry are automatically exempt from the law, but can elect to be covered. Non-construction industry corporate officers may elect to be exempt if: • The officer is listed as an officer of the corporation in the records of the Florida Department of State, Division of Corporations. • The corporation is registered and listed as active with the Florida Department of State, Division of Corporations. There is no limit to the number of corporate officers who can be exempt and there is no application fee. Non-construction exemptions are valid until a voluntary revocation is filed or the exemption is revoked by the Division.
Corporate officers or members of a limited liability company (LLC) in the construction industry may elect to be exempt if: • The officer owns at least 10 percent of the stock of the corporation, or in the case of an LLC, a statement attesting to the minimum 10-percent ownership. • The officer is listed as an officer of the corporation in the records of the Florida Department of State, Division of Corporations. • The corporation is registered and listed as active with the Florida Department of State, Division of Corporations. No more than three corporate officers per corporation or limited liability member are allowed to be exempt. A $50 fee is required for each application submitted to obtain an exemption. Construction exemptions are valid for a period of two years or until a voluntary revocation is filed or the exemption is revoked by the Division.
Disputes over Workers Compensation insurance premiums would be under the jurisdiction of:
Department of Financial Services
200 E. Gaines Street
Tallahassee, FL 32399
800-342-2762
Workers Compensation claims matters are the jurisdiction of:
Division of Workers’ Compensation
2012 Capitol Circle
SE Hartman Building
Tallahassee, Florida 32399-0680
850-921-6966
Georgia
An NCCI state. One important and unique rule in Georgia, however, is that the reallocation of payroll among classifications on a policy is considered to be a change in classification, and thus subject to the limitations placed on insurance companies regarding changes of classification.
In Georgia, an employer must obtain valid Workers Compensation coverage once the business has three or more full or part time employees.
Workers Compensation insurance premium matters are the jurisdiction of:
Insurance Commissioner
2 Martin Luther King Jr. Drive SE
716 West Tower
Atlanta, GA 30334
404-656-2070
800-656-2298
Workers Compensation claims are the jurisdiction of:
Georgia State Board of Workers’ Compensation
270 Peachtree Street, NW
Atlanta, Georgia 30303-1299
800-533-0682
Hawaii
An NCCI state.
In Hawaii:
Any employer, other than those excluded below, having one or more employees, full-time or part-time, permanent or temporary, is required to provide WC coverage for the employees.
Excluded employment includes voluntary or unpaid workers for a religious, charitable, educational or nonprofit organization; student workers performing services for a school, university or college club in return for room, board or tuition; duly ordained, commissioned or licensed minister, priest or rabbi; domestic workers earning less than $225 (cash) per calendar quarter; domestic workers of public welfare recipients; certain twenty-five percent stockholders; all fifty percent stockholders; and real estate salespersons and brokers paid solely on a commission basis. An employer may, however, elect to cover the excluded employees.
Insurance is regulated by
Insurance Division
Dept. of Commerce & community Affairs
P.O. Box 3614
Honolulu, HI 96811
808-586-2790
Workers Comp claims are the jurisdiction of:
Department of Labor & Industrial Relations (DLIR)
Idaho
An NCCI state. In Idaho, most employers are required to have valid Workers Compensation coverage, as follows: employers with one or more full-time, part-time, seasonal, or occasional employees are required to maintain a Workers Compensation policy unless specifically exempt from the law.
Insurance premiums are regulated by:
Department of Insurance
P.O. Box 83720
Boise, ID 83720-0041
208-334-4250
Idaho also maintains a competitive state fund for Workers Compensation, which means this state agency essentially competes with private insurance companies.
State Insurance Fund
1215 West State Street
Post Office Box 83720
Boise, Idaho 83720-0044
800-334-2370
Workers Compensation claims are the jurisdiction of:
The Idaho Industrial Commission.
Illinois
Illinois is an NCCI state, with some important and unique regulations lacking in other states. See our separate section, Workers’ Compensation in Illinois, for details.
Insurance, including Workers’ Compensation, is regulated by
Department of Insurance
320 W. Washington
Springfield, IL 62767
217-782-4515
http://insurance.illinois.gov/
Workers Compensation claims in Illinois are the jurisdiction of:
The Illinois Workers Compensation Commission
More details about Illinois’ Workers Compensation rules can be found here.
Indiana
Many people in the insurance business believe that Indiana is an NCCI state. This is not true.
Indiana maintains its own independent rating bureau, the Indiana Compensation Rating Bureau. This bureau uses NCCI for ratemaking, and uses the NCCI Basic Manual, but does not always follow NCCI classification interpretations. For some classification codes, the Indiana rules can be significantly different than NCCI guidelines. Furthermore, the state exceptions for Indiana listed in the Scopes Manual are not complete. For classification decisions in Indiana, it’s best to talk directly to the ICRB. You can email questions to Jeff Hiland at [email protected]
ICRB
5920 Castleway West Drive
Indianapolis, IN 46250
P.O. Box 50400
800-622-4208
tel 317-842-2800
fax 317-842-3717
Indiana also allows independent contractors in the construction trades, and Owner/Operator truckers, to file a Certificate of Exemption with the Indiana Department of Revenue. This certificate of exemption qualifies the independent contractor to not carry Workers’ Compensation insurance, and establishes that companies that use such independent contractors are also not liable for Workers’ Compensation liabilities or premium charges for those exempt independent contractors or owner/operators.
Insurance, including Workers’ Compensation insurance, is regulated overall by
Indiana Department of Insurance
311 W. Washington, Ste. 300
Indianapolis, IN 46204
317-232-2385
However, according to published accounts, Indiana’s Insurance Department is kept deliberately powerless to actually do anything about insurance problems and complaints, so the above link is provided with a very large grain of salt.
In Indiana, Workers Compensation claims are the jurisdiction of:
The Workers Compensation Board of Indiana
Iowa
An NCCI state. Most employers in Iowa are required to have Workers Compensation coverage, although proprietors (independent contractors), limited liability company members and partners are not considered employees, according to Iowa government information here.
Workers Compensation claims are the jurisdiction of:
Iowa Division of Workers’ Compensation
1000 East Grand Avenue
Des Moines, Iowa 50319-0209
800-JOB-IOWA (562-4692)
tel 515-281-5387
fax 515-281-6501
Kansas
An NCCI state. In Kansas, valid Workers Comp coverage is required of all Kansas employers except for those in certain agricultural pursuits or those with a gross annual payroll of $20,000 or less.
All payroll is taken into account, including that paid in Kansas or elsewhere. If the employer is a sole proprietor or a partnership, the wages paid to the owners and any of their family members are not used in the computation of the gross annual payroll.
Per K.A.R. 51-11-6, the provision in K.S.A. 44-505 excluding the payroll of workers who are members of the employer’s family shall not apply to corporate employers. A corporate employer’s payroll for purposes of determining whether the employer is subject to the workers’ compensation act shall be determined by the total amount of payroll paid to all corporate employees even when a corporate employee has opted out of WC coverage.
Workers Compensation claims are the jurisdiction of:
Kansas Dept. of Labor–Workers’ Compensation
800 SW Jackson, Suite 600
Topeka, Kansas 66612-1227
800-332-0353
Kentucky
An NCCI state. With few exceptions, all Kentucky employers are subject to the Workers’ Compensation Act and are required to carry workers’ compensation insurance or become self-insured, even if they have only one part-time employee. There is an exemption for employers engaged exclusively in agriculture. More Kentucky information here.
Workers Compensation claims are the jurisdiction of:
Department of Workers’ Compensation Claims
1047 U.S. 127 South, Suite 4
Frankfort, Kentucky 40601
502-564-3070 ext 391
Louisiana
An NCCI state. Most employees in Louisiana are covered from the day they start employment. Employees may be fulltime, part-time, seasonal, or minors.
Subcontractors and certain independent contractors may be considered employees if they are involved in the pursuit of the employer’s trade, business or occupation or if they are performing substantial manual labor.
The law does contain some limited exemptions. Domestic employees, most real estate salespersons, uncompensated officers and directors of certain non-profit organizations, and public officials are specifically exempted.
Most volunteer workers would not be entitled to benefits. Employers are required to have workers’ compensation insurance or to be approved to self-insure.
More Louisiana information here.
Workers Comp insurance premiums are the jurisdiction of:
Department of Insurance
1702 N. 3rd St.
Baton Rouge, LA 70802
Maine
An NCCI state. The law requires almost all public and private employers to have workers’ compensation coverage. The law defines employers as “private employers, the State, counties, cities, towns, water districts, other quasi-public corporations, municipal school committees, and design professionals.”
Bureau of Insurance
Consumer Services Division
34 State House Station
Augusta, ME 04333-0034
207-624-8475
800-300-5000
Workers Compensation claims are the jurisdiction of:
Workers Compensation Board
Maryland
An NCCI state. Workers Compensation insurance premiums are the jurisdiction of:
Insurance Administration
200 St. Paul Place, Suite 2700
Baltimore, MD 21202
410-468-2000
800-492-6116
Massachusetts
Massachusetts maintains its own independent rating bureau — the Workers Compensation Rating and Inspection Bureau. So instead of following NCCI manual rules, Workers Comp insurance in Massachusetts computes premium charges and follows classification rules created by WCRIB. This also means that experience modification factors for Massachusetts employers are calculated by WCIRB and not NCCI. Although if a company operates in both Massachusetts and in states that use NCCI, then a combined experience mod will be calculated by NCCI.
In Massachusetts, All employers are required to carry workers’ compensation insurance covering their employees, including themselves if they are an employee of their company. This requirement applies regardless of the number of hours worked in any given week, except that domestic service employees must work a minimum of 16 hours per week in order to require coverage. Employers are required to notify their employees of the name of the all employers with workers who are not exempt are required to obtain valid Workers Comp coverage.
Workers Comp insurance is regulated by:
Division of Insurance
Consumer Affairs
One South Station, 5th Floor
Boston, MA 02110-2208
Michigan
Nearly all employers in Michigan are subject to the Workers’ Disability Compensation Act. The law requires that every covered employer must provide some way of assuring that benefits are paid to its workers if they become injured while on the job. Most employers do this by purchasing an insurance policy from a private insurance company.
In Michigan, valid WC coverage is required of:
(a) all private employers regularly employing I or more employees 35 hours or more per week for 13 weeks or longer during the preceding 52 weeks.
(b) All private employers regularly employing 3 or more employees at one time. (This includes part-time employees.)
(c) Agricultural employers if they employ 3 or more employees 35 hours or more per week for 13 or more consecutive weeks.
(d) Householders employing domestic servants if they employ anyone 35 hours or more per week for 13 weeks or longer during the preceding 52 weeks.
(e) All public employers.
Michigan is not an NCCI state, but maintains its own separate independent rating organization — the Compensation Advisory Organization of Michigan, or CAOM — with an important caveat: in Michigan, there is no regulation of classification codes for voluntary (non-assigned risk) Workers Comp.
CAOM also administers the Michigan Workers Compensation Placement Authority, which is that state’s Assigned Risk plan. Michigan also calculates its own separate experience modifier for Michigan exposure, and this mod is not combinable with other states in an interstate mod. So an employer operating in both Michigan and in NCCI states will have two separate experience modifiers–one just for Michigan, and another for NCCI states.
CAOM
P.O. Box 3337
Livonia, MI 48151-3337
734-462-9600.
http://www.caom.com
Information about treatment of independent contractors and subcontractors under Michigan Workers Comp can be found here.
Insurance is regulated by
Office of Financial and Insurance Services (OFIS)
P.O. Box 30220
Lansing, MI 48909-7220
517-373-0220
877-999-6442
Workers Comp claims are the jurisdiction of:
The Workers Compensation Agency
Minnesota
Minnesota operates its own rating bureau, the Minnesota Workers Compensation Insurance Association (tel 612-897-1737) and like Michigan, does not regulate what classification codes insurers use on voluntary market WC business. Unlike Michigan, however, loss and payroll data is reported to NCCI for inclusion in interstate mods.
Workers Compensation is overseen by:
The Minnesota Dept. of Labor & Industry
Minnesota generally requires all employers who have workers to get valid coverage (with a few exceptions.
Other insurance is regulated by:
Dept. of Commerce, Insurance Division
857 Place East Suite 500
St. Paul, MN 55101
651-296-4026
Mississippi
Another NCCI state. In Mississippi, all employers with five (5) employees regularly employed are required to provide workers’ compensation insurance coverage.
If the employer has less than five (5) employees, workers’ compensation coverage is not mandatory but may be provided voluntarily by the employer. Domestic and farm labor, and employees of non-profit fraternal, charitable, religious or cultural organizations are not covered under the Law unless coverage is provided voluntarily by the employer.
The Workers’ Compensation Law likewise does not apply to federal employees or certain transportation and maritime employments covered by federal compensation laws. Finally, independent contractors are ordinarily excluded from coverage although special protection is given to employees of subcontractors.
Workers Comp Insurance premium is the jurisdiction of:
Insurance Department
1001 Woolfolk State Office Building
501 North West Street
Jackson, MS 39201
601-359-3569
800-652-2957
http://www.doi.state.ms.us
While Workers Comp claims are the jurisdiction of :
The Mississippi Workers Compensation Commission
Missouri
Another NCCI state. Missouri requires workers’ compensation insurance if you have five or more employees, unless you are in the construction industry, then you must carry workers’ compensation insurance if you have one or more employees.
Workers Comp insurance premiums are the jurisdiction of:
Division of Insurance, Dept. of Consumer Affairs
301 W. High Street
Jefferson City, MO 65102
573-751-4126
https://insurance.mo.gov
Workers Comp claims are the jurisdiction of:
Division of Workers Compensation, Dept. of Labor
Montana
An NCCI state.
State Auditor’s Office, Division of Insurance
840 Helena Ave.
Helena, MT 59601-4009
406-444-2040
800-332-6148
www.csi.mt.gov
Nebraska
Nebraska is another NCCI state,.
Department of Insurance
941 O Street, Suite 400
Lincoln, NE 68508
402-471-2201
http://www.doi.nebraska.gov/
Nevada
An NCCI state.
Insurance is regulated by:
Division of Insurance
1818 E. College Parkway, Suite 103
Carson City, NV 89706
775-687-0700
http://doi.state.nv.us
New Hampshire
An NCCI state.
Insurance Department
21 South Fruit St. Suite 14
Concord, NH 03301-7717
603-271-2261
800-852-3416
http://webster.state.nh.us/insurance
New Jersey
New Jersey also maintains its own non-NCCI rating bureau, the New Jersey Compensation Rating & Inspection Bureau. This bureau has responsibility for creating manuals and rules of classifications and experience rating for New Jersey Workers Compensation insurance. The Department of Insurance doesn’t really exercise much oversight of Workers Compensation insurance, unlike most states.
New Jersey Compensation Rating & Inspection Bureau\
60 Park Place
Newark, NJ 07102
973-622-6014
New Mexico
An NCCI state.
Insurance Division
New Mexico Public Regulation Commission
PERA Building
P.O. Box 1269
Santa Fe, NM 87504-1269
tel 505-827-4601
fax 505-827-4734
New York
New York uses its own non-NCCI, independent rating bureau for Workers’ Compensation insurance, the New York Compensation Insurance Rating Board, which develops its own manuals and rules regarding classification and experience modifiers. Because of this, employers in New York actually lack certain important regulatory protections concerning Workers’ Compensation insurance premiums that employers in many other states enjoy under NCCI manual rules or specific state regulations.
One unique aspect of New York Workers Compensation is that employers are required to obtain a separate coverage for workers’ disability from non-work-related exposures, to protect workers from loss of income due to such a disability, just as the regular Workers Compensation coverage protects those workers from work-related disability.
Insurance is regulated by
New York State Insurance Dept.
One State Street Plaza
New York, NY 10004
800-342-3736 or 212-480-6400
http://www.dfs.ny.gov/insurance/dfs_insurance.htm
North Carolina
Department of Insurance
1201 Mail Service Center
Raleigh, NC 27699-1201
919-807-6750
http://www.ncdoi.com
North Dakota
North Dakota maintains a monopoly state fund for Workers’ Comp, meaning that private insurance is not allowed. This fund is administered by
North Dakota Workers Compensation Bureau
500 E. Front Ave.
Bismarck, ND 58504-5685
701-328-3800
Insurance (but not Workers’ Comp) is regulated by
Insurance Department
600 E. Boulevard, Dept. 401 |
Bismarck, ND 58505-0320
701-328-2440
www.nd.gov.ndins/
Ohio
Ohio does not permit private insurance for Workers’ Compensation. Instead, it maintains a monopolistic state fund. However, this state fund has just recently shifted to using the NCCI classification system for workplace exposures. The Ohio Workers’ Comp system is administered by
Bureau of Workers Compensation
30 W. Spring Street
Columbus, OH 43215
614-466-4781
800-644-6292
http://www.ohiobwc.com
Oklahoma
An NCCI state. Insurance is regulated by
Insurance Department
P.O. Box 53408
Oklahoma City, OK 73152-3408
405-521-2828
www.ok.gov/oid/
Oregon
An NCCI state.
Dept. of Consumer & Business Services
Insurance Division
350 Winter Street NE, Room 440
Salem, OR 97301-3883
503-947-7980
http://www.cbs.state.or.us/external/ins/index.html
Pennsylvania
Insurance Department
1326 Strawberry Square
Harrisburg, PA 17120
717-787-2317
More details about Pennsylvania and their Workers Compensation system can be found here.
Rhode Island
An NCCI state. All employers with one or more workers in the state must obtain Workers Compensation coverage. Independent contractors are not eligible to claim benefits from those who retain their services. They must file a form with the Department of Business Regulation certify their independent status.
Workers Compensation insurance rates and premiums are regulated by:
Rhode Island Department of Business Regulation
1511 Pontiac Avenue
Cranston, RI 02920
Website: http://www.dbr.ri.gov/
Phone: 401-462-9500
South Carolina
An NCCI state.
Department of Insurance
P.O. Box 100105
Columbia, SC 29202
803-737-6180
www.doi.sc.gov
South Dakota
An NCCI state.
Division of Insurance
Department of Commerce
445 E. Capitol
Pierre, SD 57501
605-773-3563
www.dlr.sd.gov/insurance/
Tennessee
An NCCI state.
Department of Insurance
500 James Robertson Parkway
Nashville, TN 37243
615-741-2241
800-342-4029
www.state.tn.us/insurance/
Texas
An NCCI state. Texas does not require workers compensation insurance.
Department of Insurance
333 Guadalupe
Austin, TX 78701
512-463-6169
http://www.tdi.state.tx.us/wc/regulation/
Utah
An NCCI State.
Utah Insurance Department
State Office Building, Room 3110
Salt Lake City, UT 88114-6901
Vermont
An NCCI state.
Department of Banking & Insurance
89 Main Street, Drawer 20
Montpelier, VT 05620-3101
802-828-3301
http://www.bishca.state.vt.us
Virgina
An NCCI state.
Bureau of Insurance
Property and Casualty
P.O. Box 1157
Richmond, VA 23218
804-371-9741
800-552-7945
www.scc.virginia.gov.boi/
Washington
Washington maintains a monopoly state fund for WC, not allowing private insurance for this exposure.
Phone: 809-692-9390.
Other insurance is regulated by:
Office of Insurance Commissioner
Attn: Consumer Advocacy
P.O. Box 40256
Olympia, WA 98504-0256
800-562-6900
http://www.insurance.wa.gov
West Virginia
Insurance Commissioner
State of West Virginia
P.O. Box 50540
Charleston, WV 25305
304-558-3864
http://www.wvinsurance.gov
Wisconsin
Wisconsin maintains its own non-NCCI rating bureau for determining classifications, premium computation, and experience rating. In state experience modifiers are calculated by this independent bureau, but data is also provided to NCCI for interstate mods.
Insurance is regulated by:
Office of Commissioner of Insurance
P.O. Box 7873
Madison, WI 53707-7873
608-266-0102
800-236-8517
www.oci.wi.gov
Wyoming
Wyoming maintains a monopoly state fund for Workers Compensation and does not allow private insurance of this exposure. Workers’ Compensation is administered by
Wyoming Workers Safety and Compensation Division
1510 E. Persing Blvd.
Cheyenne, WY 82002
307-777-7159
www.wyomingworkforce.org
107 Atlanta Technology Pkwy., Suite 721
Peachtree Corners, GA 30092
