Workers’ Comp COVID-19 Q &A
/The COVID-19 pandemic has forced dealers to examine operating costs and responsibilities, below GNYADA’s Insurance Brokerage responds to several questions members have asked relating to Workers’ Compensation.
Can a dealer suspend WC premium payment?
Perhaps. Dealers would need to contact their WC carrier to formally request a suspension of premium payments. The carrier will most likely review each request on a case-by-case basis.
Does laying off or terminating employees reduce premiums?
YES. Notifying the billing department and informing them that you have reduced your staff is the first step. You must provide information indicating which class codes have been reduced and how many employees in each class code have been laid off in order to determine the reduction in your premium.
Some of my dealership employees are working from home. If my employee is injured while performing their job duties from home, would the dealership have to file a WC claim?
YES. The dealer would need to submit the claim. The carrier would then investigate normally, as they would have had the injury occurred in the dealership and determine if any coverage would apply.
If a dealership has suspended operations due to COVID-19, but continues to pay employees, although they are at home and not working, is this payroll included in the premium calculations for workers comp?
YES. Although a pandemic is not specifically listed within the manual rules type of event and and payroll should be included in the premium calculation.
When can a dealer stop paying WC?
When there is no payroll.
What steps will dealers need to take to reinstate Workers’ Comp policies when they return staff to working at the dealership?
If a dealer canceled their Workers’ Comp policy due to a total shutdown of the dealership, they would have to re-submit an application to rewrite the policy. If a dealer only reduced payroll via layoffs in staff, they should readjust their payroll to the current amount with their Workers’ Comp carrier otherwise it will be adjusted at their audit .
Can a dealer avoid an audit, so there is not a large premium due at the end of the end of the policy year?
YES. You can sign up for pay as you go so that you are paying for the payroll you have each pay period. This can be done in conjunction with your payroll company.
Are dealers required to continue paying WC even though employees are working from home?
YES. When an employee’s home is also an employee’s workplace, hazards an employee encounters when performing work at home are also hazards of his or her employment. Employers are responsible for providing the same safe work environment for telecommuters as for employees who work on company property.
Employers can implement the following practices that may limit workers’ compensation liability for home-based employees:
Create a telecommuting policy that outlines the employer’s expectations for employees who work from home.
Establish guidelines for a home office, such as a designated work area, and provide training related to workstation setup and safety measures, including ergonomics.
Set fixed work hours and meal and rest periods for telecommuters. Doing so can help establish whether an injury was “in the course of” employment.
GNYADA thanks Am Trust for the responses to the questions. Dealers are advised to consult with their individual carriers for answers to individual questions.
Michael W. Conway, Executive Director of GNYADA’s Insurance Brokerage can be reached at 718.746.8100 or mconway@gnyada.com for your insurance questions.
