Commonly Asked Questions - FAQ

Written By Wade Millward (Super Administrator)

Updated at July 27th, 2024

Do I need a work comp policy if I have subs that have a policy?

When you sub our work to independent contractors or subcontractors who already have workers' compensation coverage, you're not required to cover them under your own policy. However, it's still mandatory for you to obtain workers' compensation insurance. Upon the expiration or cancellation of your policy, an audit will be conducted by the insurance company, during which you'll need to provide proof of insurance for all subcontractors. Failure to do so will make you liable for the costs associated with any subcontractors who lack insurance.

 
 

What's the min payroll I can put for workers comp for my subs?

When adding uninsured subcontractors to your workers' compensation policy, it's essential to accurately report the total annual expenses for subcontractors under the appropriate classification. Failing to do so could lead to a significant audit adjustment, for which you would be obligated to pay the full amount.

 
 

How much will the general liability premium be if my payroll increases during the year?

General liability policies with premiums based on payroll apply a rate per $1,000 of revenue. For instance, with a rate of $20 and an annual payroll of $100,000, your premium would be around $2,000 per year. Should your payroll rise to $200,000, the annual premium would accordingly double to $4,000.

 
 

How many companies did you shop this with?

We have established partnerships with numerous insurance companies nationwide. However, it's important to recognize that not every insurer may be interested in providing coverage. To address this, we've conducted thorough research to identify the most suitable insurance providers that offer coverage tailored to your specific needs, based on the state in which you operate and the industry you belong to. Our initial selection process typically involves evaluating more than 10 insurance carriers to ensure we find the best fit for your requirements.

 
 

Was this the best rate?

We offer the most competitive option that provides the correct coverage. 

 
 

Do these policies meet the brand's requirements?

Our aim is to offer insurance solutions that not only fulfill the brand's criteria but also protect your investment. 

 
 

Why do I need a cyber policy?

Aside from being a requirement, cyber liability provides a lot of protection for different types of cyber incidences. To learn more go here: Cyber Liability Insurance

 
 

Can I make payments with my credit card?

Depending on the insurance or finance company you may or may not be able to make payments using a credit card. At this time, most companies do accept credit cards.

 
 

Is there a pay-in-full discount?

Depending on the insurance company you may be eligible for a pay-in-full discount. Be sure to ask your consultant. 

 

Is this the correct classification?

When partnering with a franchise brand, we undertake a meticulous process to ensure accurate classifications. A key component of this procedure involves securing approval from underwriters for the classifications we designate. Should you have concerns or believe a classification is incorrect, it is crucial to relay this information to the consultant promptly.

 
 

Do I need a commercial auto policy or can I just use my personal policy?

Many franchisors mandate the possession of a commercial auto policy. If you intend to use your personal vehicle for business purposes without having registered it under your business name, a practical solution is to lease your personal vehicle to your business. This arrangement allows you to specify in the lease agreement that the business will bear the responsibility for insurance coverage.

 
 

Will adding drivers increase my premium?

The impact on your premium from adding a driver can vary based on the insurance provider and the driving record of the individual in question. For instance, incorporating a driver with a clean Motor Vehicle Record (MVR) typically does not lead to a premium hike. However, if you add a driver who has a couple of points on their MVR, especially if your insurer is Progressive, you should expect to see an increase in your rate.

 
 

Why would I include myself in the WC policy if I have my own health insurance?

Health insurance policies can vary, with some excluding coverage for workplace injuries, dental, or vision care, depending on the specifics of your plan. Additionally, these policies often include deductibles and co-insurance requirements. In contrast, standard workers' compensation policies typically offer comprehensive coverage without any exclusions or deductibles.

 
 

Why am I getting emails from carriers and do I need to do anything?

Shortly after you bind your policies with Rikor you'll receive emails from carriers ask you to do a few different things:

  • Setup an account 
  • Pay a bill
  • Setup auto pay
  • Review your policies

We strongly encourage you to go through this process so you don't miss any important updates from your carrier.