FAQ

The determination of premium is a function of remuneration, predominantly payroll. At the inception of the policy, the premium is based on estimated payroll information. As a result, policyholder financial records are reviewed at expiration in order to accurately verify the amount of payroll for the policy period. Any changes in payroll may result in an additional premium or a return premium.

An independent contractor is defined as a person who files a DWC-11-IC “Notice of Designation as Independent Contractor” with the Department of Labor & Training. Although no one factor is determinative, issues such as work schedule control, invoicing, uses of tools/equipment, as well as the existence of a separate liability policy, are taken into consideration.

The principal contractor is liable for injuries to an uninsured subcontractors' employees.

Rhode Island-hired employees who are assigned to incidental employment in another state are covered by our "temporary exposure in other states" policy provision. Employees assigned for extended periods or permanently located in another state should be covered by a policy which we can issue through a partner for that state.

Employees who are 16 or under need working papers. Under Rhode Island workers' compensation law, an employer must pay triple damages for minors employed in violation of the law.

For each subcontractor you hire, The Beacon's auditors will look for either a certificate of workers' compensation insurance or DWC-11-IC "Notice of Designation" for a sole proprietor or partner with no employees. All subcontractors and independent contractors that have not provided The Beacon with either a certificate of workers' compensation insurance or a legitimate DWC-11-IC form will be included in the general contractor's audit and bill for premium charge. The Beacon, like the Workers' Compensation Court, may still determine that there is an employer/employee relationship. In making the determination, consideration will be given to: * Who controls the detail of the work? * Who is responsible for the detail of the work? * How is the individual paid? * Is there a job contract? * Does the independent contractor invoice the insured for work performed? * Does the independent contractor have a general liability insurance policy and/or a business license?