Reasons to add owners to WC policy
The benefits are the same for everyone covered under a commercial workers’ compensation policy, but officers many not have thought about these for themselves. Benefits include:
- Lost wage benefits with no waiting period or deductible.
- A death benefit as provided under state law.
- 24 hour coverage on foreign travel.
- If an owner or officer needs to be retrained as a result of an on the job injury, there is coverage for retraining.
- No co-pay like there is under medical insurance.
- In most cases the cost will be considerable. Take a small contractor; some carriers will assign a mandatory payroll of around $50,000 (depending on carrier). A small carpenter or carpentry company will be assigned class code 5645, current rate is 12.3728, which computes to an annual premium of $6,186! (example only)
- Disability insurance can be purchased for less than half the above amount.
- Many of above benefits can be manage through other risk transfer means.