WC for Companies with 0 Employees

[Break1630]

I have been running into this more and more often in PA where a person has been let go from his or her job but hired back as a consultant and has to carry their own GL and WC insurance. But becasue there are not any employees, my carriers will not offer a workers comp policy just to satisfy certificate requirements.

From what I understand, partners in an LLC cannot collect on a WC policy and that is what this specific entity I am dealing with is.

I'm looking for feedback on the following:
1. Is there something I can tell or show my client sp he can go back to the company he is consulting for and say "Hey, you need to to let me proceed with the consulting without Work comp coverage because I cannot secure it"
2. Is there a way for me to better phrase my inquiry to my insurance carriers so I can write it?

I hope I explained this correctly.

Kind Regards,

Dan

[superdash8]

I do not know the regulations in PA but can tell you that in VT there is a mechanism that allows corporations and LLCs with no employees to be excluded from the requirement of carrying WC coverage. See the form at the other end of this link. www.labor.vermont.gov/Portals/0/WC/Form29.pdf A copy of the state approved form can be submitted to the GC in lieu of a certificate of insurance showing WC. Technically this should satisfy the WC auditor so the entity hiring the sub-contracted consultant is not hit with additional premium, and the sub can't make a claim against their wc if they are injured. (notice that I used the word 'technically') In any case, they better make sure the sub fits the States definition of a sub, otherwise they could get in trouble. I would call the PA dept of labor and/or WC board and ask them how this is handled in PA. I hope that helps.

[thatinsguy]

In lieu of a comp policy, take a look at occ acc and see if this will satisfy the certificate holder. Occ Acc is very common in the transportation/trucking world and can be found in a slue of independents or even online. I did not search for a PA specific solution, however; a good explanation of this coverage can be found at http://www.scidriver.com/occAcc.htm. Check it out with the cert holders, they should accept this route. The pricing for something like this is pretty reasonible for an individual also. Good luck!

[Godfather]

In the PA Compensation Rating Bureau online WC manual, you'll find the following on Page 40 of the Underwriting Rules:

D. SOLE PROPRIETORS AND PARTNERSHIPS

Sole proprietors and partners are not covered by the Pennsylvania Workers' Compensation Act or the
Pennsylvania Occupational Disease Act.

Hope this helps!

The Godfather of Insurance

[pita3333]

Don't forget to cover you E&O by offering them some type of accident and disability product to effectively "replace" the WC. Just in case they suffer some type of injury that prevents them from working.

[Break1630]

Thanks for the responses everyone. Here is what I did:

I spoke to the compliance department at the State Worker's Insurance Fund and they told me that the officers of an LLC were not eligiable to elect to be covered under worker's compensation. But they can write a policy basically covering an additional employee in order to help him meet cert requirements.

I directed my client to SWIF to deal with directly.