Many Business Owners are not buying wcomp coverage

In this months Special Insurance Bulletin, I wrote about the recent study by the insurance industry that many small business owners are not buying workmans comp coverage. The main reason is the price of the coverage. A suprisingly large number of business owners have employees on the job but no coverage in place if they were to get hurt at work. The caveat to this whole situation is that work comp rates could possibly fall if everyone who is suppose to be paying into the "system" were actually doing it. Right now in most States and especially in Delaware, the work comp rates are excessively high because the actuarial loss data based on total premiums and losses is probably "skewed" due to the fact many are not buying the coverage. This is a risky proposition any way you slice it. If you have part time or full time employees or even if it is your brother in law working for you , you have to carry work comp coverage. The other side of the coin in this , is the fact that many business owners are being sued by injured workers families and the States are fining and prosecuting, business owners who choose not to buy the coverage. Our advice is don't risk it period! Call us to place coverage if you have not already. K

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