Workers Comp Insurance in Vermont: What You Need to Know

Now, when it comes to workers' comp in Vermont, the good news is they are an NCCI state, the National Council on Compensation Insurance.

What that means is there is a widespread, widely understood set of guidelines for comp in the state of Vermont. Now, baseline rates are still set by the state.

Each private insurance company that wants to write comp in the state still then has to submit and have their rates approved by the state. But then, after that, the formatting is fairly straightforward.

Now, what you do need to think about, in the state of Vermont, is someone still has to pay workers' compensation insurance.

What I mean by that, is the relationship between independent contractors, subcontractors, and your business is someone still always has to pay comp.

If you have an independent contractor or a subcontractor coming into your business, you need to know, are they truly an independent contractor?

The payment that you make to them, are you going to be responsible for the comp?

Or, and this would be the best way to handle any independent contractor or subcontractor that comes into your business, do they have their own general liability, hopefully, but also worker's comp policy?

So you are not on the hook for any payments made to those businesses and the comp while they're providing services.

Sometimes people get confused by that. If you have questions, obviously, just reach out. I'm happy to answer them for you. But someone always has to pay the comp premiums.

If they are truly a subcontractor, make sure they have their own workers' comp before they walk into their business, and you'll be all squared. So certificate management is part of it.

experience modification factor

Another one is experience mod. Your experience modification factor is one of the largest driving principles of the premiums that you pay.

I'm working with a company in Vermont right now that's paying a little over $9,000.

They came to us because they were paying $9,000 more than they should every year for their workers' compensation because their experience mod had gotten out of control.

The agency that they were working with wasn't giving them a program and process to help them bring that experience mod back down.

What does that mean? They have a manual rate set by the state and then the primary rate they're paying, based on their private carrier. That's how much per $100 of payroll.

Once you get that premium, there are some additional discounts or credits that can be applied, and then that number is multiplied by your experience mod.

If the experience mod's above one, you're going to pay more. If the experience mod is below one, you're going to pay less.

The experience mod is dictated by your claims history and the programs and processes you have in place, your injury management, and your return to work program.

If all these things sound like a lot or sound confusing, again, give us a call. Workers' compensation experts will walk you through this.

Because Vermont does have private insurance carriers that are allowed to operate inside the state, the placement of your account with the right carrier is of the utmost importance.

Meaning matching what you do, what your business is, and the risks that you have.

If you're just in Vermont or you're in multiple states, matching that with the right carrier, a carrier who understands your business and has the programs to support any injuries for your type of business.

Ultimately, and this is the most important part when it comes to cash flow, is pricing their workers' comp policies in a way that is advantageous to you.

Making sure you are with that carrier is crucial over the long term.

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The Rub

If you are an employer in Vermont, it is important to make sure you have the appropriate insurance coverage in place.

By taking the time to learn about the available coverage options and what they entail, you can make the best decision for your business.

Workers’ compensation insurance is an important protection for both employees and employers, so it’s important to make sure you have the coverage you need.

This is where we come in at Rogue Risk.

If your current insurance professional has never addressed issues like this with you before, I’d encourage you to reach out to us today.

• You can call or text us at 518.960.6600
• Click here to contact us via email.

I look forward to introducing you to a new way of viewing your insurance program.

Thank you,

Ryan Hanley