Classifications of Workers’ Compensation

Most companies pay an insurance company to protect them against workers’ compensation claims. This is important because the company will be placed into a category by the insurance provider that determines how much they pay. There are over 700 categories to classify employers as to what kind of insurance premium they have to pay to have workers’ compensation coverage.

Many companies perform a variety of tasks that would not all be easily classified under the same category. The category that company will be placed in is the one in which the majority of their payroll workers fall under. Doing more dangerous work will result in higher insurance premiums, just as driving a sports car has higher motor vehicle insurance than does a small sedan.

When companies change their business, acquire a new company, or shift their focus, they may change workers’ compensation categories. For example, if a pool supply company starts building pools in addition to providing tools and services, their category will change. If a construction company added a metalworking shop to its business, they would probably be in a different category as well. It is important to keep these considerations in mind when looking at expanding your business.

Contact Us

If you or someone you know has had a dispute about workers’ compensation, whether it is paying, receiving, or a category disagreement, legal counsel can be a very valuable tool. For more information, contact the Pennsylvania workers’ compensation lawyers of Lowenthal & Abrams, P.C. by calling 610-667-7511 today.