Workers Compensation Insurance in Maine
Allen/Freeman/McDonnell Agency
Workers Compensation Insurance
- What Is It?
- Who Needs It?
- Coverages Offered
Workers compensation insurance generally benefits both employers and employees. In the event of a job-related injury, employers may receive legal protection and employees may receive compensation.
Maine businesses are usually required by state law to carry workers comp insurance if they have employees. Skipping coverage can result in fines, and leaves a business exposed to injury-related lawsuits.
The protections afforded by workers comp insurance generally cover injuries and illnesses that employees sustain while working. These can include both sudden injuries and ones that develop over years. Work-caused death is also normally covered.
What is workers compensation insurance?
Hiring employees presents several risks, one of the most notable of which is the risk of job-related injuries. Should employees be hurt while working, workers compensation insurance may help protect Maine businesses from any resulting claims.
Workers compensation insurance generally benefits both employers and employees. In the event of a job-related injury, employers may receive legal protection and employees may receive compensation.
What Maine businesses need workers comp insurance coverage?
Maine businesses are usually required by state law to carry workers comp insurance if they have employees. Skipping coverage can result in fines, and leaves a business exposed to injury-related lawsuits.
What types of incidents does workers comp insurance extend coverage to?
The protections afforded by workers comp insurance generally cover injuries and illnesses that employees sustain while working. These can include both sudden injuries and ones that develop over years. Work-caused death is also normally covered.
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What is the NNCI workers comp insurance code system?
When underwriting workers comp policies, insurance companies classify employees according to the type of work they do. The most widely used classification system is defined by the National Council on Compensation Insurance (NNCI), and uses four numbers to designate categories.
The NNCI categories used can be relatively broad or highly specific. For example, the following are a few of the official codes and corresponding categories:
- 8803 designates financial auditors and accountants
- 8829 designates convalescent and nursing homes
- 7083 designates small sightseeing boats
- 0005 designates plant nurseries
- 2041 designates chocolate and cocoa manufacturers
- 5190 designates holiday and Christmas decorators
Businesses must determine which categories most accurately fit their workers when purchasing a policy. An insurance agent who knows workers comp in depth can assist with categorization.
What does a workers compensation audit entail?
Insurance companies regularly conduct an audit when a workers compensation policy terminates. The purpose of this audit is to make sure that the proper premiums are paid. Inaccurate information and/or personnel changes generally necessitate premium adjustments.
Businesses normally must provide documentation that shows how many people were employed during the policy’s period, and what those employees did and how much they were paid. Any overpayments will be refunded at the conclusion of the audit, or any additional premiums due will be charged.
An insurance agent can help businesses determine what documentation may be required for an audit, so businesses can ensure the necessary information is readily available.
How much are the premiums charged for workers compensation?
Workers compensation premiums vary significantly, depending on how many people are employed, what work they do, how much they’re paid, and other factors. An independent agent, who’s able to compare policies from different insurers, can help businesses check exactly how much they’ll have to pay for coverage.
How can businesses in Maine get workers compensation insurance?
For help securing workers compensation insurance, contact the independent insurance agents at Allen/Freeman/McDonnell Agency. Our Maine agents have worked with many businesses, and we’re ready to assist you. With our aid, you can be confident that your business has a solid workers compensation policy in place.
