Workers Compensation

Workers' compensation insurance is an important part of operating a business with employees. It helps provide benefits for qualifying work-related injuries and illnesses, including medical expenses and lost wages, while also addressing certain employer liability exposures.

At Barrett Insurance Agency, we're well-versed in the workers' compensation world. From small businesses and contractors to larger employers with multiple job classifications, we understand that there's more to this coverage than simply purchasing a policy.

More Than Just an Insurance Policy

Workers' compensation insurance has several moving parts, and understanding them can help avoid unexpected expenses or complications.

Payroll & Employee Classifications

Your premium is generally based on payroll, the type of work your employees perform, and other rating factors. Properly classifying employees is important because different job duties can carry significantly different insurance rates.

Subcontractors & Independent Contractors

Hiring someone as an independent contractor doesn't automatically mean they're excluded from workers' compensation requirements.

Depending on the circumstances, subcontractors without their own coverage or appropriate documentation may be included in your workers' compensation exposure. This is especially important for contractors and businesses using outside trades.

Annual Payroll Audits

Many workers' compensation policies are subject to an annual audit. The insurance company reviews actual payroll, job classifications, and subcontractor information to determine the final premium.

Keeping accurate records throughout the year can make this process considerably easier.

Your Home (Dwelling Coverage)

Helps pay to repair or rebuild your home following covered damage, such as a fire, windstorm, or other insured event. The amount of coverage should reflect what it would cost to rebuild your home, which can be quite different from its market value.

Corporate Officer & LLC Member Exclusions

Not every business owner is required to be personally covered under workers' compensation insurance. However, exclusions depend on how the business is organized and must follow the requirements of the state.

Vermont — Form 29

Vermont allows eligible corporations and Limited Liability Companies (LLCs) to exclude up to four qualifying corporate officers, LLC managers, or members from workers' compensation coverage.

Some important requirements include:

• A separate Form 29 must be completed for each individual requesting exclusion.

• Supporting corporate or LLC documentation is required, such as an affidavit or properly documented meeting minutes.

• The exclusion must be approved by the Vermont Department of Labor.

• Once approved, the excluded individual is no longer entitled to workers' compensation benefits through that exclusion.

If all eligible officers or members are excluded and the business has no other workers, the corporation or LLC may qualify to operate without a workers' compensation policy.

New Hampshire — Officer & LLC Member Exclusions

New Hampshire also allows certain business owners to be excluded from workers' compensation coverage, although its requirements differ from Vermont's.

Key requirements include:

• A corporation or LLC may exclude up to three qualifying executive officers or LLC members.

• The exclusion must be filed with the New Hampshire Department of Labor using Form 6WCex.

• The insurance carrier, or NCCI acting on the carrier's behalf, generally handles the filing.

• A workers' compensation insurance coverage notice must already be on file with the state for the same employer.

• An exclusion is not valid unless properly filed with the Department of Labor.

• A new exclusion filing is required when changing insurance carriers.

Why This Matters

An officer or member exclusion isn't simply a way to reduce an insurance premium. It also means the excluded individual may not have workers' compensation benefits available if they're injured while working.

At Barrett Insurance Agency, we're familiar with these requirements in both Vermont and New Hampshire and are happy to help business owners understand their options, required documentation, and how exclusions may affect their coverage.

Exclusion eligibility and requirements depend on the business structure, state law, and individual circumstances. State approval or proper filing is required, as applicable.