MOLLY MAID Right Start Transfer Manual Copyright 2015, Molly Maid, Inc. Workers Compensation Insurance Although Workers Compensation and Employer’s Liability Insurance is mandated in most (not all) states, it is a required coverage for every MOLLY MAID business, even if not a state mandate. It is a no-fault agreement between the employee and employer. The employee gives up the right to sue the employer for lost work time and medical costs. The employer gives up the right to claim there was contributory negligence on the part of the employee in work-related illness or injury. Statutorily required workers’ compensation insurance and employer’s liability insurance shall be maintained with limits of at least $500,000 by accident, $500,000 by disease and $500,000 policy limit. In “Monopolistic States”, such as Ohio, North Dakota, Washington, Wyoming and West Virginia “Stop Gap” coverage must be purchased separately or added to the CGL policy. “Stop Gap” in Ohio must not contain exclusion with the "substantially certain to occur" language. Workers Compensation and Employers Liability is required. Premiums for this type of insurance are based upon: An estimated payroll from a realistic financial projection. They are quoted as a rate per $100 payroll. For example, if you estimate your payroll total for a year to be $100,000 and your Worker’s Compensation rate is $6.00/$100 payroll, your cost would be $6 x 1,000 or $6,000. It is important not to understate the payroll. If you do, you will receive a large assessment at the end of the year. Likewise, it is important not to overstate the payroll. This results in a cash drain. Policies are audited every year, usually by letter. If they are done in person, you will need to provide 941’s, W-3 form or other payroll records. Classification - Usually the classification is “Inside Residential House Cleaning” and the code is 0917. This may vary in some areas. In California, it is classified as 9096 (Residential Cleaning) and NOT 9008 (Janitorial). A PEO, Professional Employer Organization, should be able to help with the appropriate classification. It is important that your agent be aware that, even though the team leader does have several responsibilities (i.e., collecting payments, driving, and cleaning) most of their time is spent cleaning. A rating plan which is derived from a claims history. Generally, rates are established and fixed by your state, in accordance with the National Council on Compensation Insurance (NCCI) guidelines. Some states retain their own jurisdiction regarding classification. 1. Bonding Insurance You shall maintain employee dishonesty insurance with minimum limits of $25,000 per loss and such coverage shall also cover acts of stealing against third parties. Minimum limit $25,000 per loss. Your agent should be made aware that your employees don’t normally handle large amounts of cash. Proprietary and Confidential Information Page 13
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