To Obtain A Cheap Work Comp Quote For Your Company Provide Us With The Following Information:

1.    Your "Declarations" Page from your Current Workers Compensation insurance policy.
	Sample Declaration pages
2. Your most current " Experience Modification Worksheet"
	Sample Experience Modification Worksheets
	What to do if you can't find yours
3. Your loss runs from the last 3 years
	What are Loss Runs/How to Obtain

Missouri Workers Compensation Insurance Guideline Summary

What is Missouri work comp insurance?

In Missouri work comp insurance is state mandated. Missouri workers compensation insurance pays benefits to Missouri employees injured at work. Benefits include medical care, lost wages and disability payments. Missouri employers, are immune from employee lawsuits for their injuries. Missouri employers are allowed to purchase the cheapest work comp insurance coverage available.

When is a Missouri employer required to purchase workmans’ compensation insurance?

Missouri employers with five or more employees must provide Missouri workers compensation insurance. Missouri contractors with one or more employees are also required to have workers comp coverage. Certain real estate agents, farm laborers, direct sellers, domestic servants, and commercial owner-operators of motor-vehicles are exempt from Missouri work comp laws.

Sole proprietors and partners in Missouri are not automatically covered under their workers compensation policy unless and until they elect to be covered. Missouri family member who are employees and members of limited liability companies are treated as regular employees. However, they can elect to opt out of Missouri work comp coverage. Employers are allowed to purchase the most affordable work comp insurance they can find.

(ADD LINK FOR LLC Exclusion pdf)

Missouri employers that don't meet the above work comp requirements can still elect to be covered under Missouri workers compensation insurance. Missouri employers who choose not to purchase Missouri work comp insurance are still exposed to civil lawsuits brought by their employees who have been injured at work.

Missouri Employers can easily comply with Missouri workers compensation obligations by buying the cheapest or least expensive work comp insurance or by becoming a Missouri state-certified self-insurer.

Does Missouri work comp insurance cover corporate officers, partners and sole proprietors?

Missouri sole proprietors and partners are treated as employers, not employees, and they are not insured by their Missouri work comp policy unless they specifically add themselves to the policy. Typically this rule also applies in Kansas, Illinois, and Arkansas. $15,600 is the most payroll assigned for Missouri sole proprietors and partners.

Corporate officers in Missouri are treated as employees of the corporation, and each must be covered with Missouri work comp unless there are two owners or less of the corporation and they are the only employees of the Missouri corporation.

Payroll for corporate officers is their actual payroll, subject to minimum and maximum limits. As of June, 2006 minimum payroll is $305 per week and maximum payroll is $500 per week. You must consider these payroll thresholds for your corporate officers as your shop your work comp insurance. To ignore them may make your work comp insurance appear cheaper than it really is.

Does Missouri require LLC members to be covered by Missouri workers compensation insurance?

The owners of limited liability company (LLC) are technically referred to as “members” rather than owners, partners or officers. In Missouri these LLC members are automatically covered by the company’s Missouri work comp policy unless they specifically state they do not wish to be covered. A waiver excluding coverage must be signed by each LLC member and submitted to the workers compensation insurance company at the time of application. Mid term policy changes generally are not allowed. Click on the following document link for a copy of the official Missouri waiver form. Contact Cheap Work Comp for further explanation.

Do family members need to be covered by Missouri work comp insurance?

The following explanation was valid as of August 28, 1998. Unless family members are specifically excluded by written endorsement they are treated and covered like any other employee on a Missouri workers comp policy. The official exclusion endorsement is referred to as NCCI form WC 00 03 08, Partners, Officers and Others Exclusion Endorsement. Keep in mind, even though you’ve excluded family members they must still be counted towards your total number of employees to determine if you must provide workers comp insurance. As of June, 2006 that requirement is 5 or more employees. Contact cheapworkcomp.com to help you find affordable work comp insurance in Missouri, Kansas, Illinois, and Arkansas.

What are my responsibilities as an employer under Missouri work comp regulations?

The penalties for failing to provide required coverage can be severe. Failing to comply with Missouri workers compensation laws is a class A misdemeanor. The monetary penalty can be as much as twice the annual work comp premium you would have paid, not to exceed $25,000. Plus, you are still liable for all the costs of any medical injuries to your employees. You also lose protection from civil lawsuits as provided within the work comp statutes. It makes sense to maintain cheap workers comp insurance to avoid these penalties.

You must display a notice in a conspicuous place informing your employees of pertinent claim contact information in the event an injury occurs. This notice must clearly identify your Missouri work comp insurance company and/or their claims administrator. You can get a copy of the notice from Cheap Work Comp.Com or the Missouri Division of Workers Compensation

If your Missouri employee is injured on the job you must provide immediate medical attention including emergency medical care. Provided your employee doesn’t miss any time from work and his or her medical expenses are less than $500, you as the Missouri employer may pay these bills yourself. You are still required to notify your insurance company and submit a First Report of Injury to the Missouri Division of Workers' Compensation. However, these claims will not be included in your experience modification factor calculations. This will help you maintain cheap work comp insurance rates.

You must and it is in your best interest to report injuries to your insurance company as soon as possible after they occur. You must also report injuries to the Missouri Division of Workers Compensation within 10 days. Your workers compensation insurance company usually will file a report for you, but ultimately it is your responsibility so confirm with your insurance company that the proper reports have been filed. It is a misdemeanor to knowingly fail to report an injury. Direct any questions about reporting to the Missouri Division of Workers Compensation at 1-573-522-1963.

Do all insurance companies charge the same rates for Missouri workers compensation insurance?

In 1994, Missouri work comp insurance companies were allowed to set rates without approval of the Missouri Department of Insurance. Missouri work comp insurers typically base their rates on loss experience for each particular classification code as tracked by the National Council on Compensation Insurance (NCCI) out of Boca Rotan, Florida. Each company charges rates they believe are adequate for the risk. You’ll want to shop around to find the cheapest workers compensation insurance in Missouri.

Please explain the Experience Modification Factor.

Your experience modification factor represents a unique mathematical formula that compares your loss history to your industry’s average over the past three years. The Experience Modification Factor or Experience Mod is a multiplier used against your standard Missouri work comp premium to calculate your final premium. An Experience Mod of 1.0 represents your industry’s average. When multiplied against your standard premium there is no impact on your final premium. When your 3 year loss history is lower than average your experience mod will be less than 1.00. When multiplied against your standard Missouri workers comp premium you will see a reduction in your final premium. Thus you are rewarded for your efforts to reduce work place injury. When your losses are higher than average your experience mod will exceed 1.00. The result is you will be penalized, with the intention that this additional premium will act as an incentive for you to reduce work place injuries. Your Missouri work comp premium must exceed more than $7,000 for one year or $3,500 for two continuous years before you will qualify for experience modification rating. Maintaining a low experience mod will help you get the cheapest work comp insurance.

How does a scheduled rating affect my Missouri workers compensation insurance policy?

In addition to the Experience Mod Missouri workers comp insurance companies can use scheduled ratings to adjust Missouri work comp premium the get it as cheap as possible. Scheduled ratings are simply extra discounts and they are supposed to represent the unique characteristics of your business that make it less prone work comp injuries. However scheduled ratings can easily be negotiated to help lower your work comp premium. Scheduled rating credits are filed with the Missouri Department of Insurance in Jefferson City, and each work comp insurance company's scheduled ratings are different. You are supposed to receive a notice of any schedule rating credits or debits that affect your Missouri work comp policy. 25% is the maximum debit/credit that is allowed. A Cheap Work Comp agent can help you get the maximum credits available to you.

How to reduce the cost of your Missouri Workers Comp insurance.

Your insurance agent should help you determine if your job classifications codes and assigned payroll are properly identified on your Missouri work comp policy.

It is recommended that you shop around to find the lowest and cheapest workers comp rates available to your Missouri business. Many employers are under the false impression that they can only purchase their work comp insurance from the same company that provides their property & liability insurance. In fact, there are a number of cheap work comp insurance companies that provide stand-alone coverage. A Cheap Work Comp.com agent generally has access to more of these companies than any other insurance agent.

Reducing work place injuries by improving workplace safety is the most effective way to lower your work comp insurance premium. Plus is helps improve retention, moral and attract preferred employees.

Consider returning injured employees back to work under a modified duty program. This will reduce the overall cost of the claim thereby reduce the impact to your experience modification factor. Proceed cautiously. Consult your workers compensation insurance company and the Missouri Division of Workers Compensation for proper advice so as to avoid any federal or state work place rules.

There are varied opinions on the value of paying medical-only claims of $500 or less. Regardless of what you decide don’t forget that you must still report the injury to your Missouri work comp insurance company and the Missouri Division of Workers Compensation.

What is the Missouri assigned risk market?

Missouri work comp laws require most employers to provide workers compensation insurance. However, workers comp insurance companies doing business in Missouri are not required to insure every employer making application to them. Work comp insurance companies can pick and choose who they insure based upon their own risk tolerance guidelines. The assigned risk market has been established to help Missouri employers obtain workers compensation insurance when they are unable to purchase it through the open market. Missouri employers who find themselves in this market include those with dangerous or inherently risky jobs, those with poor loss experience, those that are too small, and those who that are new in business. Provided the employer has not engaged in previous acts of insurance fraud or has unpaid workers comp premium with another carrier, the assigned risk market must accept the application and insure the risk. However, the Missouri employer must comply with all guidelines, recommendations and procedures imposed by the assigned risk market.

Missouri Assigned Risk Market insurance rates are considerably higher than open market rates. These higher rates act as an incentive for employers to modify their work place so they will become an acceptable risk to the open markets.

The Assigned Risk Market is the market of last resort, and all attempts should be made to find cheaper workers compensation insurance in Missouri.

Who maintains the Missouri workers compensation system?

The Missouri Division of Workers Compensation is responsible for maintaining and enforcing Missouri’s workers compensation rule. Its duties include making sure all qualified Missouri employers maintain work comp insurance, reviewing and investigating reports of work place injuries, and mediating claims disputes. Employees and employers are encouraged to call the division at 1-888-837-6069 for questions.

Missouri’s workers compensation rules are approved by the Missouri Department of Insurance. The Missouri Department of Insurance also monitors workers compensation rates in Missouri. The Missouri Department of Insurance can be reached at 1-800-394-0964.

How can I obtain the best price for Missouri workers comp coverage?

One of the best ways to locate the best price for workers compensation insurance in Missouri is to contact a Cheap Work Comp affiliate in your area.

What are the basic workers comp benefits in Missouri?

All necessary medical benefits are provided by workers compensation. Injured Missouri employees may receive temporary total disability payments of up to 2/3 of their average weekly wage once they have missed three days of work. Once the Missouri employee is off work more than 14 days, they are then is paid for those first three days of work missed that they missed. There are additional workers comp benefits in Missouri for permanent injuries or disabilities or death.

Resolving Disputes: What is the Missouri Workers Compensation Determinations Review Board?

The Missouri Department of Insurance tries to resolve disputes between Missouri employers and Missouri workers compensation insurance companies over job classification codes, experience modification factors or NCCI rules interpretation. When problems can’t be resolved an appeal can be made to the Review Board.

Contractors and Missouri Workers Comp Insurance:

Anyone who builds, remodels, repairs or tears down buildings is considered to be in the construction industry. Follow this link to see a complete list. Missouri contractors must provide workers compensation insurance for their employees.

Can my general contractor require me to carry Missouri workers compensation insurance if I am not required by statute to do so?

The answer is yes. General contractors in Missouri according to Missouri work comp rules are responsible for injuries to employees of subcontractors who do not have Missouri workers compensation insurance. The contractor’s Missouri workers comp insurance company is going to charge extra premium for all the subcontractors who are uninsured because of the added exposure. Many Missouri general contractors will no longer hire subcontractors that don’t have Missouri work comp insurance. Your best solution is to purchase the cheapest or most affordable Missouri work comp insurance.

Missouri Work Comp Insurance Resource Directory

Missouri Division of Workers Compensation

Missouri Workers Comp Insurance City Directory

Albany

Arnold

Aurora

Ballwin Bellefontaine Neighbors Belton Berkeley
Bethany Black Jack Blue SpringS Boonville Branson Brentwood Bridgeton
Buckner Butler Cabool Cameron Camdenton Cape Girardeau Carthage
Caruthersville Centralia Chesterfield Chillicothe Clarence Clarkson Valley Clayton
Clinton Concordia Columbia Crestwood Creve Coeur Desloge Desoto
Des Peres East Prairie Eldon Ellisville Eureka Excelsior Springs Farmington
Fenton Ferguson Festus Florissant Forsyth Fulton Gladstone
Glendale Grain Valley Grandview Hallsville Harrisonville Hazelwood Hermann
Higginsville Hillsboro Holden Hollister Houston Huntsdale Independence
Jackson Jefferson City Joplin Kansas City Kimberling City Kimmswick Kirksville
Kirkwood Knob Noster Lake St. Louis Lamar LaPlata Lebanon Lee's Summit
Liberty Malden Manchester Maplewood Marble Hill Marshall Maryland Heights
Maryville Merriam Woods Mexico Moberly Monett Mount Vernon Mountain Grove
Neosho Nevada New Franklin New Madrid New Haven Nixa Normandy
North Kansas City O'Fallon Oak Grove Oakland Odessa Olivette Osage Beach
Overland Ozark Pacific Paris Park Hills Parkville Pattonsburg
Piedmont Pleasant Hill Pleasant Valley Poplar Bluff Raymore Raytown Republic
Richland Richmond Richmond Heights Riverside Rolla Salem Savannah
Sedalia Shelbina Shrewsbury Sikeston Slater Smithville St. Charles
St. John St. Joseph St. Louis St. Peter St. Robert Springfield Sullivan
Sunset Hills Tipton Trenton Trimble Town & Country Troy Union
Vandalia Viburnum Warrensburg Warrenton Warsaw Washington Webster Groves
Weldon Spring West Plains Wentzville Wildwood Willard Willow Springs Wright City