Welcome to the Ochsner Insurance blog! Today, we’re diving into the complexities of workers’ compensation insurance, particularly when your business operates across multiple states like Nevada, California, Oregon, and Washington. Let’s break it down.
What Are NCCI States?
First off, it’s important to understand which states are NCCI (National Council on Compensation Insurance) states. In our case, Oregon and Nevada are part of this system. California, while similar, operates under its own system, and Washington is categorized as a monopolistic state. This classification significantly influences how workers’ compensation policies are structured.
The Implications of Monopolistic States
In monopolistic states like Washington, you cannot choose your workers’ compensation carrier; you must go through the state itself. This also means you lose part two of employer’s liability insurance typically included in standard workers’ compensation policies. So, if you operate in Washington, ensure you secure that coverage through your general liability insurance instead.
Navigating Multiple Carriers
Let’s say you have a preferred insurance carrier that covers Nevada and Oregon but won’t write policies in California. You have a couple of options:
- Find a New Carrier: Look for a carrier that can handle all your workers’ compensation needs across California, Oregon, and Nevada.
- Standalone Policy: Alternatively, consider obtaining a standalone policy in California, possibly through the California state fund.
Classifying Payroll Correctly
One of the critical aspects of managing workers’ compensation across states is accurately allocating payroll to the correct class codes based on the work being performed. Some class codes may be more expensive in California than in Nevada, so it’s essential to categorize your employees’ payroll correctly. This can lead to significant cost savings and ensures that your employees are covered accurately.
Prioritizing Sustainability and Profitability
At the end of the day, your workers’ compensation strategy should focus on sustainability and profitability. It’s about protecting your employees and ensuring your business can thrive even in challenging times. Being proactive in these discussions with your insurance agent can make all the difference.
Need Help Navigating Workers’ Compensation?
If you’re feeling overwhelmed or uncertain about your workers’ compensation coverage across states, don’t hesitate to reach out. Our team at Ochsner Insurance is here to help. You can give us a call at 775-261-1633 or fill out a form on our website, and one of our risk management advisors will get in touch with you.
Final Thoughts
Understanding the nuances of workers’ compensation insurance can seem daunting, especially when dealing with multiple states. However, with the right knowledge and guidance, you can ensure your business is well-protected and positioned for success.
Here’s to your continued success in navigating the complexities of business insurance!