“I was working on this house. I didn’t really plan to have employees. A guy walked up. He looked down on his luck and asked for a few bucks. I told him if he picked up some of the debris and put it in the bin, I’d give him $100 for the day. He worked really hard. A few hours later, I went to lunch. Before I left, I gave him $100 cash and told him to finish up. I also told him not to go on the roof. I didn’t expect him to be there when I got back, much less go up on the roof. He did, and he fell. At the hospital he told them he was working for me. To make matters worse, he told them I promised him $200 and I hadn’t paid him yet.”
Workers’ compensation insurance is available even if you have no employees. It is also available if you only hire someone occasionally. This is called an “if any” policy. Many people think this kind of policy is complicated or costly, but it is often simpler and cheaper than expected.
What is an “if any” policy?
An “if any” policy is a workers’ compensation insurance policy issued on an “if any” basis. This means you, the purchaser, do not anticipate hiring any employees during the one-year policy term. You might think that this is an unnecessary expense; however, there are situations where an “if any” policy can come be very useful.
An “if any” policy may make sense if:
- You contract with a business that requires you to have a workers’ compensation policy, even though you are not legally required to have one. The “if any” policy fulfills that requirement.
- You are not sure when you might hire someone and want to be prepared with coverage when that happens. The “if any” policy can be that backup policy.
- You want peace of mind if you suspect you might have an employer/employee relationship with someone you work with.
- You want protection in case anyone files a workers’ compensation claim against you.
It is important to know that an “if any” policy does not cover you, the owner. It only covers employees you
may hire.
How much does an “if any” policy cost?
Because an “if any” policy is based on the idea that you do not expect to hire any employees and you will not have payroll, the premium charged is not based on any exposure. The cost depends on the type of business you operate. The maximum you would be charged is based on a $550 minimum premium plus any applicable assessments. Many business classes have minimum premiums lower than $550, so your cost may be much less.
At the end of the policy term, you will receive a payroll report. If you had no payroll during the year, write “no employees” on the report and return it back to the insurance company. After the report is processed, the insurance company will issue a credit. This credit reflects applying a minimum premium for the clerical class and subtracting that from what you already paid. This usually takes 45 days to process. In this example, your out-of-pocket net cost for the “if any” policy would be about $216.
If you have any employees during the policy term, your cost will be higher and depend on payroll and the type of work your employees perform.
If you don’t submit a payroll report to the insurance company, you are not likely to receive any premium credit.
How do you get an “if any” policy?
An “if any” policy can be only purchased through the Oregon Workers’ Compensation Insurance Plan, commonly known as the assigned risk plan.
You can apply online at www.ncci.com or call 800-622-4123 (toll-free). When you call, listen for the prompt for assigned risk. Tell the attendant you are an Oregon employer so you are not charged for the service. You will be able to complete the application over the phone. You cannot be charged extra fees, and you do not have to go through an agent. If there is any confusion about an “if any” policy, ask for the supervisor of the Oregon unit.
After your application is completed, you can use an electronic bank transfer to get coverage in force faster. In some cases, you can apply in the afternoon and have coverage in place as early as 12:01 a.m. the next day.
An “if any” policy is an easy and relatively inexpensive way to protect your business and meet contract requirements.
If you have questions about “if any” policies or other questions related to workers’ compensation insurance, please contact:
The Office of the Small Business Ombudsman for Workers’ Compensation
503-378-4209
wc.advocate@dcbs.oregon.gov
Our office was established to serve Oregon businesses as a workers’ compensation insurance advocate
and educator.
You can visit our website to read more articles in our frequently asked questions section.