Pennsylvania Workers Compensation Insurance-Workmans Compensation

Pennsylvania Workers Compensation Rules

Pennsylvania Workers Compensation Insurance

1. Does my Pennsylvania business need workers compensation insurance?

Workers' compensation insurance coverage is mandatory for all employers who have 1 or more employees, part-time or full-time, including family members. Executives are also considered employees of a corporation.

2. In Pennsylvania who can exempt themselves from Workers Compensation Insurance?

There are a few exceptions for those who are not required to carry workers' compensation insurance.

They are as follows:

* Home, domestic service or casual workers

* Agricultural workers, unless the employer pays wages of $1,200 or more in 1 year to 1 employee; or employs 1 worker in 1 year for 30 or more days

* An employee who is a member of a religious sect, which by reason of its tenets and teachings is conscientiously opposed to acceptance of insurance benefits, may apply to the bureau for an exception

* Licensed real estate salesperson or licensed insurance agent

* A Sole proprietor or Partner

3. Does Pennsylvania workers compensation law have specific requirements for subcontractors/contractors and sole proprietors?

Contractors are responsible for the payment of compensation benefits to employees of its uninsured sub-contractors. Therefore, if you hire an uninsured sub-contractor you will be charged a premium for the compensation you pay to that uninsured sub-contractor. The way to avoid these charges, is to require all sub-contractors to have their own Workers' Compensation policy and to furnish you with a certificate of insurance before work begins. This will prevent you from inheriting a Workers' Compensation claim from another businesses' worker, while also saving you on your Workers' Compensation premium.

The State Workers Insurance Fund has stopped accepting a General Liability Certificate alone as proof of exemption from charges for a general contractor. They now require certificates of insurance showing Workers Compensation coverage by the sub-contractors before they will exclude their wages from the General Contractors calculation of premium.

Employee Leasing and Staffing Companies

Using a PEO or staffing company to obtain your workers compensation may be a good alternative to purchasing your own workers compensation policy. Leasing companies handle your payroll, w-2 forms, unemployment and workers compensation claims. In many cases the down payment required to obtain a new workers compensation policy is high and many new businesses cannot afford the down payment. Another advantage, based on my experience, is that you will never get audited because you pay as you go for your coverage. We represent numerous leasing and staffing companies who in many cases offer deep discounts on your workers compensation coverage that you will not find from standard workers compensation insurance carriers.

USL&H & The Jones Act

We have excellent workers compensation programs for these specialty risks requiring this endorsement. If you are unsure and want to read either the USL&H or Jones Act I have provided helpful links below for you convenience. I have found them to be the most detailed and good resources on the laws.

If you need a quote that requires this coverage

Click Here for a USL&H Quote

Click here for the complete USL&H Act, courtesy of Cornell University.
Click here for: USL&H & Jones Act Information
Defense Base Act Division of Longshore and Harbor Workers' Compensation

Pennsylvania Workers Compensation Insurance

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