subject: Used Car Dealership Insurance Is Sound Protection [print this page] Used car dealerships enlist a wide array of personnel to manage their day-to-day business. With so many people in the workforce the possibility of someone getting injured is possibly quite high. That is why its so important to have good Workers Compensation coverage with an insurance partner that will help a dealership stem losses and promote safety.
Workers Comp is a main coverage, as are other forms of dealership insurance, and is one that cannot be ignored. The need for workers compensation is without question, because legal and moral commitments towards the business and the staff have to be met. Everyone on payroll must be covered, with management and owners having the option to include or exclude themselves from workers compensation coverage.
Owners may opt for exclusion from coverage
In the event owners do not want to be included (one example is that they may get income from, but do not do any actual work, at the dealership), they have to sign some form of exclusion document. Remember that no employees/contractor/officer of the dealership is covered for bodily injury in connection with any at-fault car accident related to the activities of the dealership. Coverage for employees for these scenarios is only offered under a workers compensation policy.
Workers compensation premiums are based on how much payroll will be paid in the next 12 months. It is not easy to project rates of workers comp because it relies on future payroll. Because of this, an insurance company gives a projection in the beginning, then it will audit the company payroll towards the expiration of the policy term, after which date they will notify the final price. There might be extra charges, or money may be returned in the form of a refund at the end of the policy period for the older policy.
People covered include all the staff with W2s (they must be included by law), independent contractors with 1099 (can be excepted only if it can be proven that they have workers comp coverage on their own), and officers/owners of the business unless specifically excluded.
Independent Contractors must also show proof of coverage
Independent contractors (i.e. vehicle operators who transport vehicles from car auctions to dealerships) must be included unless they prove that they have workers comp coverage with another company.
Carriers that specialize in Workers Compensation usually work with wholesalers or agencies experienced in this area. This is particularly important today with comp pricing rising as claim frequency is on the rise in addition to other factors that influence rating. Be sure to discuss your Used Car Dealership Insurance needs with an expert in Workers Comp.
by: TheresaL.Stromberg
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