Here is a great example of Unions showing their power by getting this law amended at last minute. Beware the unions are not done as they are going after the sole props next!
The article seems to completely miss the point (and importance) of the new law. The law didn’t grant corporations the right to exclude officers from coverage – it TOOK AWAY the long-standing right of members of limited liability companies and executive officers of corporations to exclude themselves from WC coverage if they are actively involved in work at any construction site in the state of NH. The law is highly controversial, and has created a significant financial burden for many small contractors; it has also created a huge E&O exposure for NH insurance agents. Legislative efforts are already under way to repeal or modify the law to correct this situation.
A bigger question needs to be addressed: if an executive excludes himself, and has health insurance, will that health insurer cover the excluded officer for a work-related injury? It’s a question only the health carriers can answer, but my guess the answer is a resounding: NO. Caveat emptor.
Paul – It’s been our experience, as providers of both WC and Health coverages for many years, that the vast majority of health insurance carriers do not exclude coverage for work related injuries or illnesses. Nor do they impose any penalties for lawfully opting out of available WC coverage.
This is great!!! I can’t wait to pay for insurance that I can never use! As a sole member, how can I not work? My business will fail!! “No worky, no money!!” If insurance agencies thought W/C fraud was a problem before, wait until all the little guys start to go belly up and have no choice but to fall back on resources like this. The best part is even if your pay is $0.00 or you only make $10,000 a year, you still have to cover yourself for over $20,000. That sounds fair. If they do not want small business in N.H they should just say so. God forbid we get our heads above water and enjoy life.
The law does not currently apply to sole proprietors or partnerships – where’s the logic there? As previously stated, legislative initiative is underway that would restrict application of the law to state public works projects only, rather than to all construction sites – however, we are also told that the unions will not only be fighting this initiative, but will be seeking to expand the law to include sole proprietors and partnerships, too!
Here is a great example of Unions showing their power by getting this law amended at last minute. Beware the unions are not done as they are going after the sole props next!
The article seems to completely miss the point (and importance) of the new law. The law didn’t grant corporations the right to exclude officers from coverage – it TOOK AWAY the long-standing right of members of limited liability companies and executive officers of corporations to exclude themselves from WC coverage if they are actively involved in work at any construction site in the state of NH. The law is highly controversial, and has created a significant financial burden for many small contractors; it has also created a huge E&O exposure for NH insurance agents. Legislative efforts are already under way to repeal or modify the law to correct this situation.
A bigger question needs to be addressed: if an executive excludes himself, and has health insurance, will that health insurer cover the excluded officer for a work-related injury? It’s a question only the health carriers can answer, but my guess the answer is a resounding: NO. Caveat emptor.
Paul – It’s been our experience, as providers of both WC and Health coverages for many years, that the vast majority of health insurance carriers do not exclude coverage for work related injuries or illnesses. Nor do they impose any penalties for lawfully opting out of available WC coverage.
This is great!!! I can’t wait to pay for insurance that I can never use! As a sole member, how can I not work? My business will fail!! “No worky, no money!!” If insurance agencies thought W/C fraud was a problem before, wait until all the little guys start to go belly up and have no choice but to fall back on resources like this. The best part is even if your pay is $0.00 or you only make $10,000 a year, you still have to cover yourself for over $20,000. That sounds fair. If they do not want small business in N.H they should just say so. God forbid we get our heads above water and enjoy life.
The law does not currently apply to sole proprietors or partnerships – where’s the logic there? As previously stated, legislative initiative is underway that would restrict application of the law to state public works projects only, rather than to all construction sites – however, we are also told that the unions will not only be fighting this initiative, but will be seeking to expand the law to include sole proprietors and partnerships, too!
does this law not affect sole props ?