Owners of companies providing professional business services ranging from IT to architecture in California now have the option to purchase state-mandated workers’ compensation insurance through Hiscox (LON:HSX). The international and national small business insurer made the announcement of the new option recently. The new policy covers medical benefits, wages and access to medical professionals for workers who suffer an injury or illness as a result of their employment.
California Labor Code Section 3700 mandates that all employers offer workers’ compensation even if they have only one employee. The new product will be underwritten by Hiscox Insurance Company Inc in Chicago. A Hiscox Workers’ Compensation Insurance policy is to be sold in a package with another business insurance product covering professional or general liability and/or a business owners’ policy from the company. Presently, the policy is available only in California.
The kind of work-related accidents and illnesses that are included under California workers’ compensation insurance include employee injuries suffered while lifting heavy objects and accidents that occur when a staff member is traveling to a client’s office.
Companies that will be covered under a Hiscox Workers’ Compensation Insurance policy include IT/Technology firms as well as Architects and Engineers and a variety of others offering professional business services.
Although these policies are state-mandated, the annual premiums a firm pays from a private insurance company depend on several factors such as payroll, industry classification and the number of past work-related injuries on record. A Hiscox Workers’ Compensation Insurance policy will offer flexible monthly payment options with no additional fees.
Kevin Kerridge, Executive Vice President of Small Business Insurance at Hiscox USA, explains the company’s focus and future plans in the space.
“One of the key insights behind us launching our US small business operation in 2010 was just how underserved small business owners have been by the insurance industry,” Kerridge told Small Business Trends. “We’re proud to add another product offering to what we already provide to those customers. We’ve started in California as a first step, and over the next 12 months we’ll selectively expand our geographic footprint in this new product line.”
California Flag Photo via Shutterstock
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