Frequently Asked Questions

+ Does My Business Need Workers Compensation Coverage?

If you hire any individual to work on behalf of you and your business, you are required to carry workers compensation coverage.

+ Do 10-99 Employees Need Coverage?

YES! Any employee you pay on a 10-99 basis is still subject to workers compensation law. The only time a 10-99 employee would be exempt from coverage is if they furnish you with evidence of their own insurance, are free to work for any other individual or entity, and are not a full time employee of your organization. This includes salespeople, hair stylists, barbers, temporary employees, seasonal employees, employees paid commissions, day laborers, etc. Here is the State of Pennsylvania Law:

B. COVERAGE REQUIREMENTS

1. Compulsory as to all employments Exceptions:

a. Individual proprietors

b. Partners of a partnership (including members of a Limited Liability Company (LLC). Note: Pursuant to Act 20 of 2011, a sole proprietor, partner of a legal partnership or member of a Limited Liability Company (LLC) may be able to purchase and/or be insured under a standard workers compensation insurance policy. If a sole proprietor, partner or LLC member wishes to obtain such coverage, a written request must be submitted directly to the carrier providing the existing or new policy under which coverage for the individual in question will be provided. Use WC 00 03 10 – Sole Proprietors, Partners, Officers and Others Coverage Endorsement. Refer to Rule IX, A., 6. for purposes of determining remuneration in computing the premium charge.

c. Elected officers of the Commonwealth or any of its political subdivisions.

d. An executive officer of a for profit corporation or an executive officer of a nonprofit corporation who serves voluntarily and without remuneration may, however, elect not to be an “employee” of the corporation. For the purposes of this exclusion, an executive officer of a for-profit corporation is an individual who has either an ownership interest in a Subchapter S corporation as defined by the Act of March 4, 1971 (P.L. 6, No. 2) known as the “Tax Reform Code of 1971,” or an interest of at least five percent in a Subchapter C corporation as defined by the Tax Reform Code of 1971.

e. Any person who is a licensed real estate salesperson or an associate real estate broker affiliated with a licensed real estate broker or a licensed insurance agent affiliated with a licensed insurance agency, under a written agreement, remunerated on a commission only basis and who qualifies as an independent contractor for State tax purposes or for Federal tax purposes under the Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. § 1 Et Seq.).

f. Domestic or casual labor

g. Outworker (a person to whom articles are given for cleaning, repair, etc. at home).

h. Farmer with one employee who works less than 30 days a year or earns less than $1,200 a Year. A spouse or a child of the farmer employer under eighteen years of age shall not be deemed an employee unless the services of such spouse or child are engaged by the farmer employer under an express written contract of hire which is filed with the Pennsylvania Department of Labor and Industry.

i. Elective for members of certain religious sects whose tenets prohibit benefits from insurance, provided the sect makes provisions for its members.

+ What is a Monopolistic workers compensation state?

Monopolistic Workers Compensation States are states that require you to purchase workers compensation benefits from the state's Workers Compensation Bureau. There are four monopolistic states: Ohio, Wyoming, North Dakota, and Washington.
Even if you carry workers compensation in another state, it is important to be sure it will cover you in a monopolistic state. You may be required to buy more than one workers compensation policy.

+ Are there payment plans?

Policies can be paid in full, bi-annually, quarterly, monthly, or "pay as you go" using a payroll reporting form.

+ What is Pay as you Go?

Pay as you go allows your workers compensation company to work with your payroll officer to provide monthly reports. A bill is calculated for the month and sent accordingly. This means you only pay for the exact coverage you need, and you can avoid a costly audit at the end of the year.

+ Is there Audit Support?

Yes, a Smarter Work Comp employee can help you coordinate your annual audits. Just call!

+ Where can I get a certificate?

Certificates can be requested right through our website, free of charge. Turnaround time is typically 1-2 hours and is always less than 24hrs.

+ How do I file a claim?

Claims can be filed by submitting a an incident report form or directly to the insurance company. Please visit our claims section for additional detials.

+ What are Workers Comp Class Codes

A class code is a three or four digit numerical code assigned by NCCI (National Council on Compensation Insurance) or a State Rating Bureau like the PCRB (Pennsylvania Compensation Rating Bureau). Class codes are assigned to differentiate between the various job duties or scope of work performed by employees. You can find a full list of classification codes here.