One of the questions we often hear is “Am I required to have Workers Compensation Insurance?”
If a business has more than 2 employees then Workers Compensation is required regardless of the type of business.
The definition of an employee is purposely broad. It includes not just direct employees but also 1099 workers and uninsured subcontractors as well as temporary or seasonal workers.
Insurance rates are based on payroll and not on the number of employees. When you begin a Workers Compensation policy your premium is based on your estimated payroll for the year.
At the end of the policy year the Insurance Company will normally request an audit to determine the actual payroll.
If your actual payroll is greater than the original estimate then you may be billed for the difference. If your actual payroll is less than the estimate you may be entitled to a premium refund.
You can call our office at 540-382-4277 if you would like a rate proposal or send me an e-mail.
Workers Compensation for Offices and Small Business are normally very affordable in Virginia.