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5 Workers Who May Be Exempt From WC

If you are hurt while working or have an illness caused by conditions at work, you may be entitled to workers’ compensation benefits. Workers’ compensation is a state-run insurance system created to compensate workers for injuries received in the workplace. Employers’ participation is mandatory under state law, and they are protected by the workers’ compensation program from being sued further by the injured employee.

To qualify for workers’ compensation benefits, you must meet the definition of “employee.” Let’s take a look at what that means.

Am I an Employee for Workers’ Compensation Purposes?

Any employee is entitled to receive workers’ compensation benefits. It doesn’t matter how long you have been employed or whether you are working part-time or seasonally. Regardless of these criteria, if you are an employee and injured on the job you will be eligible to receive workers’ compensation benefits.

There can be uncertainty, however, as to what it means to be an employee. By definition, an employee is a person hired for wages or a salary. An employee’s duties are typically dictated or controlled by the employer, and the employee receives any job training needed by the employer.

Independent contractors, freelance workers and consultants, on the other hand, operate more independently and are just required to deliver a job. The manner in which it is completed is not controlled by the company. These workers are not eligible for benefits under workers’ compensation laws.

Special Rules for Certain Workers

In some states, there are some special groups of workers who, although they may meet the definition of an employee, are not required to be covered under an employer’s workers’ compensation insurance. The criteria will vary by state, so it is best to consult with an experienced workers’ compensation attorney if you have doubts. Some of the groups that may be exempt from workers’ compensation coverage are:

Casual Labor – Casual labor is usually defined as work that is not in the usual course of business for the employer. For example, a company may hire someone to do some landscaping or carpentry, which does not directly promote the company’s main business.

Domestic Workers – Domestic workers are paid to help with domestic tasks such as cleaning.

Agricultural and Farm Workers – Agricultural workers perform physical labor and operate machinery on farms, ranches and other agricultural sites under the supervision of farm or ranch managers.

Undocumented Workers – Undocumented workers generally work for cash and are not asked to provide identification or evidence of legal status to the employer.

Leased or Temporary Workers – Leased or temporary workers are employed by a professional employer organization (PEO) and not the company they are working for. They usually work under a contract between the company that needs work and the PEO.

Workers’ compensation insurance is a helpful program to ensure that employees are suitably and promptly compensated for losses incurred when they are injured in the workplace. A person must, however, meet the legal definition of employee in the applicable state. If you have any questions whether you meet that criterion, consult with a workers’ compensation attorney to find out your rights.

The Hype Cycle of Insurance Disruption

The research firm Gartner has a great model for showing the relative maturity of different technologies. It’s called the Hype Cycle, and it looks like this:

hype

Source: https://en.wikipedia.org/wiki/Hype_cycle

There are five phases. First, a technology emerges, triggering a myriad of ideas for potential applications. Startups are founded, commentators predict it will change everything, incumbents include it in the SWOT (strengths, weaknesses, opportunities and threats) analysis section of their annual strategic plan. These expectations reach a peak and then start to decline as technical limitations, barriers to consumer adoption and regulatory concerns emerge. Chastened, new technologies then slowly regain credibility as people focus on how they can be applied to create real value in the here and now. Finally, they achieve mainstream adoption and acceptance.

So what would the hype cycle of insurance disruption look like, in 2016? I think something like this:

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The hottest topics of discussion in insurance right now are those left-most on the chart. We can expect the next 12 months to see seed-stage angel and VC investments in start-ups addressing the insurance implications of IoT/connected home (Domotz), blockchain (Everledger), drones (Drox) and maybe even artificial intelligence (Brolly).

Meanwhile, insurance industry incumbents will continue appointing chief digital officers, opening digital garages and launching venture funds and start-up incubators with the aim of getting a stake in the next generation of InsurTech companies. It will be a few years before we see whether these investments are creating value.

On the other side of the peak of inflated expectations, there is a deepening malaise around peer-to-peer (P2P) insurance. New York’s Lemonade may have just raised a $13 million seed round, but it has a long hard road ahead. The company’s somewhat hubristic claim to be the world’s first P2P insurer suggests executives aren’t aware of Friendsurance or Guevara and the challenges these admirable businesses have faced in creating a value proposition that consumers can understand and buy into.

P2P insurance remains intellectually exciting to insurance industry insiders but deeply unappealing to ordinary people. Do you want to feel social pressure from your friends not to make a home insurance claim if you spill paint on the carpet? No, neither do I. It will take a radically different articulation of the P2P consumer proposition for it to gain more traction — probably one that doesn’t focus at all on the product mechanics.

If the appeal of P2P insurance is in decline, big data is in the trough. There is even a bot that substitutes the phrase “chronic farting” in any tweet that mentions it. Consolidating a global insurer’s data assets on a single platform and then powering the whole organization with advanced analytics seems about as realistic as boiling the ocean.

But away from these grandiose projects, there are specific insurance use cases where big data has tangible value today. Underwriting using Twitter data is already as powerful as traditional question sets. At Bought by Many, we’ve analyzed the anonymized search data of 3 million U.K. Internet users to identify where the biggest gaps are between consumer demand for insurance and the products being supplied by the industry. Meanwhile, social media data, particularly from Facebook, is hugely powerful for insurance distribution – not just for targeted advertising but for understanding and serving people’s unique insurance needs.

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There is also a number of technologies that are mainstream in other sectors but still haven’t been fully adopted in insurance – programmatic advertising, even web analytics. The most egregious example is mobile. 75% of U.K. adults now use mobile Internet, and yet encountering a mobile-optimized or responsively designed insurance quote and buy process is still a pleasant surprise. Perhaps this reflects insurance companies’ bad experiences of developing apps that no one downloaded during the earlier phases of smartphone adoption; but surely getting mobile sorted should be a higher priority for insurers than launching an incubator. Mobile-first insurance startups like Worry + Peace and Cuvva can provide inspiration.

When it comes to technology, insurance isn’t a leader, it’s a follower. So it’s in the smart application of maturing technologies that the biggest opportunity for insurance disruption lies.

Top Five Questions to Ask About Document Restoration

If you wait until disaster strikes before lining up restoration services, you’ve waited too long. You need to be thinking the unthinkable now and should start your search for the best disaster restoration company by asking these five questions:

1. Which drying techniques do you use?
A professional disaster restoration company uses a variety of drying techniques. Technicians should be familiar with how moisture affects different materials and be able to quickly respond to reduce or prevent mold growth, further damage and business disruptions. Effective techniques that are used by the best document restoration professionals include vacuum freeze-drying and desiccant air-drying.

2. How many years of experience does your company have?
An experienced document restoration company has an established reputation in the industry. Look for a contractor that has association memberships and industry certifications. The employees should also participate in professional training programs throughout the year.

3. Will I have a service advisor or point of contact?
The best disaster restoration services come with exceptional customer service. You should have a service advisor or point of contact. Instead of leaving you to figure out the types of restoration services you need and to schedule the work on your own, a service advisor helps you determine your needs, guides you through the restoration process and handles the details so you can carry on with your day-to-day business. The advisor will also provide you with status updates and act as a point person when you have questions.

4. Can you provide references?
If a contractor hesitates in the slightest to provide you with references, immediately move on to another restoration company. The best restoration companies have confidence and take pride in their work, and make it simple to get your hands on a list of past clients.

When you call the references, questions you may want to ask them include:

  • Would you use this company again?
  • Were you happy with the results?
  • Was it simple to communicate with this contractor or your service advisor?
  • Were there any complications? If so, how did the contractor handle the problem?

In addition to checking references, go to the Better Business Bureau’s website (BBB.org) and see if the company has any complaints against it. Your insurance company, respective state contractors board and the American Red Cross can also tell you if there have been any problems with this contractor.

5. Do you offer a secure environment when restoring confidential documents?

Disasters don’t discriminate when it comes to document types. If a restoration company has to take sensitive documents (e.g., patient records, contracts and project details) offsite, you need to be assured that security measures are in place and that there is an appropriate chain of command for handling your documents. In addition, feel free to ask about the background screenings that new and current employees undergo and their frequency, especially if your industry has strict standards regarding screening compliance and the privacy of clients.

Peace of mind is priceless. If you haven’t experienced a disaster yet, there is no better time than now to begin your search for a restoration company to have on file. By interviewing prospective companies, you’ll feel more confident about the service provider that you choose to help get your business back on its feet after an incident.