My firm settles worker's compensation premium disputes almost weekly.
Most of these claims stem from of an annual audit at the end of a policy period resulting in a substantially higher premium calculation than anticipated by the business owner when they signed up for coverage. This is often due to non-employee sub-contractors being included for coverage.
My clients typically believe this is an error on behalf of the insurance company, especially if they have provided a contract to the subs affirming their status as non-employees.
Unfortunately, this does not automatically exclude these subs from the worker's comp premium calculation.
Unless an insured company can show proof that their sub-contractors carried their own worker's comp insurance coverage, they must be included in the premium calculation. This is because the insurance company bears the burden of insurance exposure and would be required to pay any claims the subs might file if they were injured while working for the insured company.
I have found that not all insurance agents are aware of this so they fail to point out the issue to their customers when they take out coverage.
If your company is involved in a dispute of this nature with any insurance company, please feel free to contact my office to discuss your options.
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