New Workers' Compensation Insurance Policy In Wisconsin Requirements When Placing a Policy Into The Assigned Risk Program:
One of the easiest commercial insurance policies to get in Wisconsin is workers compensation. The reason is simple, because it's required by law for all employers, and the state wants to encourage businesses to hire, the state also requires that all employers are able to purchase a workers' compensation policy. Therefore, it doesn't matter what type of business you're in, you can almost always (with some requirements and restrictions) go to the workers' comp "pool" (assigned risk) program that's available to get your first policy.
For sole proprietors wanting a "ghost policy", the tougests part of getting a policy for many clients I speak with is the fact that many new employers, and especially sole proprietors without employees can't find an insurance agent who will take the time to go through the process of interviewing and writing a workers' comp policy for them. Some people I speak with have spoken to five or six agents, all saying "sorry, no" before speaking with me. It leaves many with the impression that it's difficult to get, or their business is a challenge, or it takes a rocket scientist to submit a policy application.
Nothing could be further from the truth. The reason why so many agents won't write the policy app is because the commission is so low for "in any / ghost policies" that it's essentially pro-bono work (or very near) and many insurance agencies actually lose money by doing the work. Since few are willing to work for free (or actually pay to work), it's understandable why many agents and insurance agencies have made the decision to not write the policy. Some that do write it check a box "don't pay a commission" because again, the commission is so low, it can cost more in bookkeeping cost to record the transaction than the actual commission. In other words, we're talking low low low. 1 Reason Insurance will write a sole proprietor if any/ ghost workers compensation policy in Wisconsin. All we ask for is an opportunity to gain your other business. We're confident our service is so far superior to others, that you'll decide to move all your business to us.
We know that just a "little bit better" service usually doesn't cut it, (unless people are mad, and sometimes they are, taking the time to switch agents isn't the most fun thing people can think of to do on any given day) and we know we have to be miles above the level of service of even the top agencies, and we certainly strive to be your last insurance agency you will ever want.
If we place your workers' compensation policy in the "Pool" (assigned risk program), the state requires a form or forms. If you've never had employees and/or a workers compensation before, then a "No Previous Payroll" form is required. The state requires the form to be notorized. Usually, for most people, a trip to your local bank solves the notary requriement the easiest. Courthouses and most law offices also have a notary too.
If you've had payroll before, your last three years (or if shorter, what's available) of Form 941s are required.
If you've had a workers' compensation policy before (within the last five years), please provide the following:
Name of carrier(s)
Dates active (one year policies, so for example 12/15/204 to 12/15/2005)
If any audits are not completed for any workers' comp policy
If any policy was canceled for non-payment
Most officers/owners don't elect to have their own payroll counted, and therefore have NO coverage if they get injured while working, albeit some decide they want coverage. If you WANT COVERAGE, then fill out the election form (included), and we'll include your own payroll also. As stated, most don't and usually, it makes more sense to get a disability income insurance policy instead of adding an officer/owner to a policy.
If you haven't already, simply provide your date of birth and let me know you're interested in finding out your options and costs, and I'll be happy to get a rough estimate (or exact quote if you like) of what the cost to protect your income is. For most people with commitments including auto loans and housing, it doesn't actually cost as much as many would guess to make sure money is coming in, even if you're not working due to an injury.
Payments for Assigned Risk (pool) workers' compensation policies in Wisconsin:
As of this writing, you should expect to pay the policy in full if the estimated premium is under $2000. For larger polices, it's possible to have deposits as low as 10% using premium financing and when doing so, the additional payments are based on "pay as you go", so you're not having to pay large amounts before using the coverage. Pay as you go can be a great way to manage your business' cash flow, especially compared to pool policy deposits. Otherwise, the following standard deposit and payments are allowed also:
For policies above $2000 and up to $5,000 the deposit is 50% with the rest due in 60 or 90 days depending on carrier (it's supposed to be 90 days, albeit some carriers have been known to request/demand payment within 60 days).
For policies from $5001 up to $10,000 the deposit requirement remains the same at 50%, while the rest is due in two quarterly payments.
For policies over $10,000, the deposit falls to 25% and the employer is allowed to make nine monthly payments.
Included as an attachment is a "no previous payroll" form and a sample so you know what one looks like when completed. At some point I need to update it as I made it in a rush while a client was at the bank and had some questions on what it should look like. You can tell I'm a Fleetwood Mac fan if you look close enough…..
WI Worker's Comp No Payroll form