It is getting more and more complicated to insure businesses, and workers' compensation is no exception. Market availability is becoming more restrictive, commission income is shrinking, and business owners are beset by skyrocketing workers' compensation costs. Many insurance brokers pursue only large and complicated workers' compensation accounts rather than the less profitable "Main Street" risks... the "Mom and Pop" stores, the small office, the light service risks. In contrast, AMIS has selected private investigators, insurance adjusters, security guards, private patrols and alarm companies as our target markets for workers' compensation insurance, provided that we also write the General Liability / E&O for these risks.
Background
Prior to the establishment of the first workers' compensation laws, workers who were injured in the course of employment could only collect damages by suing their employer and proving negligence on the employer’s part. This system favored employers since it was difficult to prove negligence, and made it difficult for injured workers to obtain an award. Not until workers' compensation legislation replaced the tort system did workers routinely receive compensation for occupational injuries without establishing negligence on the part of the employer. Workers' compensation insurance provides compensation medical care for employees who are injured in the course of employment, in exchange for mandatory relinquishment of the employee's right to sue his or her employer for the tort of negligence.
Workers' Compensation Policies
For those that do not have a complete understanding of workers' compensation insurance policies, the following describes the standard provisions of the Workers' Compensation and Employers’ Liability policy.
The are two distinct features of the policy:
| Coverage A. | This is the Workers' Compensation section, under which the insurance company agrees to assume the liability imposed upon the insured by the workers' compensation law or laws in question. |
| Coverage B. | This is the Employers’ Liability section, which protects the insured against liability for situations in which an employee not covered under workers' compensation laws could sue for injuries suffered under common law liability. This portion of the contract is similar to any other liability policy and is subject to the same types of conditions. |
A Hot Issue: Employee vs. Independent Contractor
The workers' compensation laws of most states mandate that eligible employees (but not independent contractors) be provided with workers' compensation benefits, so it is necessary to distinguish between the two classes.
Generally, an independent contractor is a person who is accountable to another person for the completion of a project, but is not accountable to that person for a manner in which the project is completed.
An employee, however, is accountable to another person not only for the completion of a project, but also for the manner in which it is completed. The employer has complete control over the activities of his or her employees, whereas he/she has very little control over the activities of an independent contractor.
Even with liberal interpretation eroding the concept, the principle of control remains a basic guideline, but there is no single, decisive factor for determining whether or not independent contractor status exists. If the status of a worker is in question, the employer should consult his or her attorney or seek the advice of his/her workers' compensation insurance company’s legal department.
Workers' Compensation Insurance Classifications
One of the fundamental ways that insurance companies determine workers' compensation insurance premiums is by employing a classification system. The system matches different workplace exposures with corresponding classification codes, each one with a rate proportionate to the risk associated with that exposure. Proper risk classification is critical because the classification governs the workers' compensation premium more than any other factor. However, it is often difficult to determine exactly which classification code of the hundreds available is the most appropriate one to use.
At AMIS, we have worked through most of the classification issues with our workers' compensation underwriters for private investigators, insurance adjusters, security guards, private patrol and alarm companies in 48 states. Our underwriters now understand the operations of each of these types of exposures, and we are qualified to select the proper classifications.
National Business Insurance to Cover Automobile, Property and Workers' Compensation
AMIS and CoverX, industry leaders with respect to general liability and excess / umbrella liability coverage within the private investigator, security guard and alarm contracting industries, proudly introduce expanded capabilities through an exclusive relationship with Travelers. These new capabilities give AMIS and CoverX the ability to underwrite the automobile, property and workers' compensation lines of business on Travelers paper in concert with the general liability and excess / umbrella liability lines they underwrite on First Mercury Insurance Company paper.
AMIS and CoverX currently write general liability and excess / umbrella liability lines in all states except for Rhode Island and Wyoming. The Travelers capability is available to AMIS / CoverX accounts in all states except Alaska and Hawaii. Standard filed minimum premiums apply by state, but there is no premium limitation on what that they will underwrite. Their appetite for the auto, property and workers' compensation lines closely follows their appetite from a general liability standpoint. Prohibited guard classes include security at nightclubs and establishments primarily engaged in the business of serving alcohol and exposures prone to heavy on-road driving conditions or material handling conditions. While there are no formally defined prohibited alarm classes, larger central station monitoring exposures are more difficult from a property standpoint.
AMIS Application Information
To receive a Workers' Comp quick indication quote, please fill out our online quick quote indication form. To fully apply for workers' compensation insurance, please complete Acord 125 Available Nationwide
and Acord 130 (workers' compensation section), and submit them along with current value loss runs to Karen Metcalf or Bill West.
To receive a General Liability quote, please:
- complete PDF the application on your computer
- print and sign it
- fax all materials to our office at:
(760) 471-9378 or (800) 573-8550 (Toll Free)
The Quick Quote Indication form will come directly to us when you click the form’s SUBMIT button. |
To preserve your confidentiality, please FAX the Full PDF Application Forms below, do not email them. |
NOTE: The application is not an insurance policy and does not bind any coverage. All applications must be underwritten and a quotation will be issued subject to underwriting guidelines. The quotation does not bind coverage.
AMIS Contact Information
QUESTIONS: |
If you have any questions regarding our workers' compensation program, call us at 800-843-8550 Monday thru Friday 8:30 AM to 4:00 PM Pacific Coast Time. |
| Outside California: Call Bill West Toll Free at (800) 843-8550 |
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In California: Call Karen Metcalf |
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