Workers Compensation Insurance

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Presentation to Delta Business Expo -01-12-12

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Workers Compensation Insurance

  1. 1. The Insurance Center and Colorado Working together to reduce loss expenses! Special Thanks to; Dennis Derrieux and Pinnacol Assurance for their help in preparing today’s presentation. This information is a very general overview and should in no way be considered advice. Any answers provided are for discussion only and do not constitute a client agent relationship.
  2. 2. Information Provided by: Pinnacol Assurance Workers’ Compensation Insurance <ul><li>What is it ? </li></ul><ul><li>Accident insurance program </li></ul><ul><li>State mandated </li></ul><ul><li>Employer funded </li></ul>
  3. 3. “ An investment in knowledge pays the best interest.“ - Benjamin Franklin Workers’ Compensation Insurance <ul><li>What’s The Law? </li></ul><ul><li>The Colorado Workers’ Compensation Act </li></ul><ul><ul><li>Established in 1915 </li></ul></ul><ul><ul><li>Based on a ‘mutual renunciation’ of common law rights and defenses </li></ul></ul>
  4. 4. Information Provided by: Pinnacol Assurance Workers’ Compensation Insurance The Workers’ Compensation Act is intended to: • Assure quick and efficient delivery of disability and medical benefits to injured workers • At a reasonable cost to employers • Without litigation
  5. 5. “ An investment in knowledge pays the best interest.“ - Benjamin Franklin Workers’ Compensation Insurance <ul><li>Injury: Accident or Occupational Disease </li></ul><ul><ul><ul><li>Accident — An Unforeseen Event </li></ul></ul></ul><ul><ul><ul><li>Occupational Disease — Cumulative </li></ul></ul></ul>
  6. 6. Information Provided by: Pinnacol Assurance Workers’ Compensation Insurance <ul><li>Reporting Requirements by Law </li></ul><ul><li>• Injured worker </li></ul><ul><ul><ul><ul><li>4 days to make written report to the employer </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Penalty of 1 days’ compensation for every day late </li></ul></ul></ul></ul><ul><li>Employer </li></ul><ul><li>• 10 days to notify Pinnacol of a new injury </li></ul><ul><li>• Penalty: up to $500 per day can be assessed </li></ul>
  7. 7. “ An investment in knowledge pays the best interest.“ - Benjamin Franklin Workers’ Compensation Insurance What is “Compensable”? Def. Entitled to compensation; capable of being compensated • For an accident or occupational disease to be compensable, it must: — Have occurred during the course and scope of the injured worker’s employment — Be causally related to ( arising out of ) the injured worker’s employment
  8. 8. Information Provided by: Pinnacol Assurance Workers’ Compensation Insurance <ul><li>Who is an Employee? Workers’ Compensation Act </li></ul><ul><ul><li>States that any individual who performs work for an employer is an employee unless the individual — is free from control and direction in the performance of the service, and — is customarily engaged in an independent trade, occupation, profession, or business related to the services being provided, and </li></ul></ul><ul><ul><li> — Has no workers </li></ul></ul>
  9. 9. “ An investment in knowledge pays the best interest.“ - Benjamin Franklin Workers’ Compensation Insurance Employee Is Defined As • Any employee of the business • Minors • Part-time workers • Undocumented workers • Corporate officers -LLC members Option to reject if ownership is >=1O% • Owners and partners - if elected • Certain volunteers - firefighters, search and rescue, police, etc. <ul><li>Exceptions </li></ul><ul><li>Convicts working as part of prison labor program </li></ul><ul><li>Real estate agents and brokers </li></ul><ul><li>Ski area volunteers </li></ul><ul><li>Employees when engaging in recreational activities </li></ul><ul><li>Independent Contractors </li></ul>Independent Contractors Independent Contractors
  10. 10. Workers Compensation Insurance <ul><li>Independent Contractor (IC) </li></ul><ul><li>Individual who is performing work for the insured </li></ul><ul><li>Is engaged in an independent trade, occupation, profession, or business </li></ul><ul><li>Is free from control, direction in the performance of services, and meets the independent contractor criteria </li></ul><ul><li>An IC is excluded from the policy </li></ul><ul><li>ICs using laborers are considered employers • Required to carry workers’ compensation insurance for their workers • If an IC does not carry workers’ compensation insurance </li></ul><ul><ul><ul><ul><li>The insured becomes the statutory employer </li></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Those workers’ are covered on that insured’s policy </li></ul></ul></ul></ul></ul>

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