Sole proprietors and partners are also considered as employers and were not given an option to obtain workers compensation coverage. Last April 12, 2000, it was reiterated that they are regarded as employees of a limited liability company so they should be under the worker’s compensation coverage.
Chapter 383, P.L. of 1999 stressed out that sole proprietors have the right to avail the worker’s compensation insurance effective April 13, 2000. The good news is that LLC members are also ordered to be placed in the same category.
Electing of Coverage
Upon your initial application for coverage, you can already choose your coverage. Another option is upon the renewal of your present worker’s compensation policy. However, you need to remember that you can’t elect to cover midterm.
Ways on Electing Your Coverage
Complete the form of Notice of Election that will only require you necessary information like the names of the persons electing the coverage plus their annual wage estimation. Their duties should also be explicitly specified.
Coverage for All LCC Members
Remember that all of the partners or member of an LLC should elect the coverage.
Discontinuing of Election Coverage
During the policy period, it is not allowed to rescind the election of coverage. If you would like to terminate, you can accomplish it during the renewal of policy for new coverage.
Cost of Electing Coverage
A premium needs to be paid based on your remuneration as a sole proprietor. It can include all the members of the LLC.
Eligibility for Health Benefits
If your coverage is not elected, your benefits in an accident or health policy will not be affected by not being able to choose coverage.
Your Obligation as an Employer
Your obligations to your employees will not be affected in any other way by this election. You must continue with your employee’s insurance that is stated under the worker’s compensation policy. Your choice of the election will not affect it.
If you are a sole proprietor and you currently have employees, you are automatically excluded from the coverage of worker’s compensation insurance. However, you may elect yourself through a legal filing. However, if you don’t have employees and you obtained the coverage, you will be automatically included the worker’s compensation insurance.
Electing yourself to be part of the coverage requires knowledge about the worker’s compensation insurance to determine if you are eligible or not. Familiarized yourself with the specified clauses of the insurance to know your way around the process.