Do you need workers compensation for family business? Consultants

You need to check state law to be sure. Generally, any business with employees must have workers’ compensation insurance. It doesn’t matter whether they are family members. They still could be injured at work and still would therefore need workers’ compensation benefits to protect them.

Workers Compensation Consultants

You can suffer from substantial fines if your state requires you to have workers’ compensation insurance and you don’t have it, so it is important that you check with someone knowledgeable in your state. Understanding Monopolistic Workers' Compensation States and law: A Detail Guide

The easiest way to do this is to search on google for “state workers’ compensation law” and likely you will find a page detailing what is required. You want to make sure the information is coming from the government.

Most employers are required to carry workers' compensation insurance, which helps employees who have sustained a work-related injury recover lost wages and other accommodations. The types of injuries compensable under workers' comp are those which can be connected in some way to an employment requirement or condition. Examples might include lung cancer resulting from second-hand smoke at a restaurant that permits smoking, carpal tunnel syndrome caused by too many consecutive hours at the computer, or a sprained ankle after falling from a telephone pole.

This article covers the types of injuries compensable under workers' compensation insurance. See FindLaw's Workplace Safety and Workers' Compensation subsections for more information.

Is it a Work-Related Injury?

A work-related injury is one that happened while you were doing something on behalf of your employer or otherwise in the course of employment. Most injuries that can be classified as work-related are those that occur at the workplace, but also may occur in company-owned trucks and other locations as long as the employee was doing something connected to his or her job. This includes company parties and other social events sponsored by an employer, but not necessarily on company-owned property.

Injuries compensable under workers' compensation insurance can sometimes include those resulting from “horseplay” or other instances where employees may have been disregarding workplace safety rules. State laws, and even courts within some states, remain divided on this issue.

If an injury occurs during lunch break, it may be considered work-related if it happens at the company cafeteria, on other employer-owned grounds, or otherwise connected to the course of employment (for example, lunch with a client at a restaurant). Additionally, an injury may be considered work-related if alcohol was involved if it was provided at a work-sponsored event; mental injuries (such as anxiety or depression) may be covered if they were sustained on the job or caused by the job; and a preexisting condition worsened during the course of employment may be covered.

Are You Covered?

Employers in most states are required to carry workers' compensation insurance (or workers' comp), but only workers properly classified as "employees" are covered (as opposed to independent contractors). Also, Idaho and Wyoming do not require coverage of undocumented workers; but Arizona, California, Texas, and other states specifically include illegal immigrant workers in employers' workers' comp coverage.

Depending on your state, certain types of workers may not be covered by workers' comp (see Workers' Compensation Links for state-specific information). Some examples are listed below:
Domestic workers (housekeepers, nannies, babysitters)
Agricultural workers
Seasonal workers
Undocumented workers

Get a Free Claim Review


In the best-case scenario, your workers' compensation claim will be processed in a prompt manner and you will receive all of the proper compensation for your injury. But it's not always clear whether your particular injury is covered or even technically work-related, so you may want to speak with a workers' compensation attorney just to be sure. Click on this link to have an experienced workers' comp lawyer review your claim at no charge.

Workers Comp has been rated by using the Experience Modification Factor

Workers Comp has been rated by using the Experience Modification Factor since it began – well, in the 1930’s.   If you search the J&L Risk Management website, you will see many articles on the E-Mod. 

The E-Mod is a delayed system.  You cannot tell actually what happened fully in any state with WC until 4 years after a policy commences.    The aforementioned loss ratios are not designed to be a rating factor of any type.  My actuarial background says no.

If your company is self insured, then the Loss Development Factor (LDF) reaches further into the past – up to 10 years.   To say the Loss Ratio produces a premature measurement is a large understatement.    

Therefore, as with ice cream and assaults,  one should examine other intervening variables – LDF or E-Mod.  Workers comp statistics can be great – with the right ones. 

Article provided by James J Moore, AIC, MBA, ChFC, ARM. All articles are original content. Check out the full website at www.cutcompcosts.com

10 Ways The Fed May Cause Major Workers Comp Changes

The 10 Ways Cause Major Workers Comp Changes 

We could be very nearly significant workers comp changes. The Fed Head Janet Yellen and her Board simply expanded the Federal Bank loaning rate by .25%. This may not be a jar to the protection markets – yet. Perused the article connected to in the second sentence. Yellen may found a stealth increment soon. 

A situation takes after which may bring about a Hardening of the Markets. I cautioned about this before when China was influencing the world currency markets. Presently, the currency showcase changes are significantly nearer to home. 

The Fed builds the prime loaning rate a couple times throughout the following two years. 

Normally, the venture and obligation financing costs will take after. 

Protection bearers have possessed the capacity to bolster a delicate market by making up their lower premiums with outside stock speculations – check any protection transporter's money related proclamations. 

In the course of the most recent 50+ years, when loan costs look better, individuals and companies move their assets from stocks to currency showcase accounts. 

Over a similar most recent 50+ years, the numbers demonstrate that stocks procure a great deal more than an enthusiasm bearing record 

Protection transporters won't have the capacity to procure similar returns, stocks income dependably beat enthusiasm bearing records 

As shared assets and financial specialists as a rule put cash on premium, the share trading system as a rule endures – not a market revision 

The transporters need to make up the earlier delicate market endorsing misfortunes some place – specifically premiums 

Because of these significant workers comp changes, transporters will move toward becoming danger unwilling and quit endorsing certain less secure markets 

The over nine stages are not an emergency of any sort. They speak to the begin of a Hard Market. 

Reward thought – as the dollar reinforces (as it has for three months), outside speculations will endure as bringing assets once again into the US will cost significantly more than in 2016 and already. Ouch for outside ventures 

A companion of mine says that even a broken clock tells the right time twice every day. He could be right for this situation. The stealth concern is that the US printed cash by the basketful. 

The financing cost on a lot of money – we do have a ton – needs just little premium increments to bring about a spike in expansion > Think about Greece in the EU. 

Will 1 – 11 above happen? The Fed would need to expand financing costs over the long haul each time they meet. Bearers may choose to take it on the nose just to keep business. 

Are the conditions ideal for a hard market? Significant workers comp changes may happen if the financing cost spikes. 

Article gave by James J Moore, AIC, MBA, ChFC, ARM. All articles are unique substance. Look at the full site at www.cutcompcosts.com