Human Resources Insurance Evalution

Our objective is to:

  • Insure compliance with Workers Compensation requirements
  • Enhance Client attraction for highly skilled Independent Contractors (IC)

Scope

Evaluate bulk purchase of insurance (especially Workers Compensation) and other IC business needs.

Assure Workers Compensation (WC) Insurance is in force on IC’s. Some state laws are ambiguous and leave WC law judges with latitude to rule there is an employer relationship in an IC arrangement.

Confirm General Liability and Professional Liability insurance, Affordable Care Act health and welfare benefits requirements are met.

Project methodology

  1. Evaluate structure, administration and costs of:
  • Affinity Group has a shared interest or common goal, similar to professional societies, and IC’s become AF members to enjoy membership benefits.
  • Joint Venture  creates a new company in which Client and the IC’s are owners and IC’s are members.

For both options insurances are purchased for the entity and most importantly WC is purchased for all IC’s.  Also a Third Party Administrator  would be designated as manager and administrator under the full control of Client.

  1. Detail the pros and cons of the each of the above options in terms of net cost, administration and risks to Client.
  2. Recommend option that is most cost effective and plan for implementation.