Health insurance is not the only type of insurance that fits small business owners these days.
In the last three years, the compensation for workers’ compensation has increased by an average of 50 percent across the country. The increase in California has also increased, where the government Arnold Schwarzenegger has threatened to use a ballot initiative to pursue the proposed caps on medical costs and benefits, if the cut in the budget has not been passed by March.
The small-business lobbyist has pushed aggressively for such changes, and has argued that there is a particularly difficult time for small businesses, while the cost of compensation for the workers working in the competition Absorbing. But advocacy groups have asked to be silent about a trend that regulators and experts believe is to add to the problem – the increasing number of small businesses which avoid the requirements of issuing computer insurance for workers
In most states except in Texas, most employers require compensation compensation for workers, which is not a defective insurance which provides medical care and lost wages to injured workers and employers from civil suits brought by employees Saves you
It is a small employer in low-wage blue collar industries – such as restaurants, construction and knowledgeable services – which are likely to go without coverage for lower premium or reduce payroll, say experts.
Robert P. Hartwig, chief economist at Insurance Information Institute, a business group in New York called the “practice” in the field of “specially contracted economy”. ”
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“It’s a multi-billion dollar problem overall in the whole country,” “said Mr. Hartwig.
Those insurers who have no insurance or are employed by companies with insufficient coverage, they can still file claims – usually the costs incurred by companies with insurance, which result in paying more premiums
For Richard J. Lawson and his brother Frank, whose family had formed the Lawson Roof Company in San Francisco due to earthquake and fire in 1906, there are two harmful effects in that cycle. Lawson Ruffing, which has 88 employees, has reported a decrease in its injury rate, but since 1999, employees’ compensation premiums increase 100 percent, in each payroll every dollar is 9 2 cents in premium At the same time, Richard Lawson said, he has opened a cost difference which has made it difficult to win new contracts.
They said, “We are reducing by uninsured competitors.” “When we tell someone, ‘$ 14,000 will cost you to change your roof,’ and someone else says, ‘I’ll pay it for $ 9,000,’ talking about all of you about insurance But you will lose it. ”
In a recent survey, the Roof Contractor Association of California found that nearly 70 percent of the roofed phone book was either an underhand head or “were going”, there was no insurance. And a 2001 study by the California Department of Industrial Relations found that 25 percent of the employers in the state were irrevocable.
Some states have started taking a closer look at employers who do not pay their proper share. The New York State Workers Compensation Board established an Employer Fraud Task Force in 2001, which has filed more than 20,000 leans and raised more than $ 26 million in fines by unarmed employers. Antifraud units are also actively pursuing business owners in Florida, Ohio and Texas.
But Professor of School of Management and Labor relations at Rutgers University in John F. Burton Jr., New Brunswick, NJ said that enforcement was difficult due to the nature of criminals.
Professor Burton said, “By the time you catch up with small employers, you can catch up with them, you can not get any property from them.”
Similarly, California’s insurance commissioner John Garamendi said in a recent interview that he was “very, very interested” in implementing. But he warned that it will take time to redirect resources and train investigators.
He said, “You do not have a common stick in these cases-in one-gun-their face-and-theft-wallet cases.”
Source: Best Car Insurance UK