Considering becoming a Non-Subscriber when it comes to Comp? First, read the Four Steps to Becoming a Responsible Non-Subscriber below.
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FOUR STEPS TO BECOMING A RESPONSIBLE NON-SUBSCRIBER
Correctly Exit the Comp System
It is the responsibility of the Employer to Exit the Comp system correctly. If you simply “drop” comp, you are still part of the system and subject to all its rules.
You must file a DWC Form 5 with the state
You must post notices in the workplace
You must notify existing employees of coverage termination
You must begin notifying new employees with Non-Subscriber status
This makes the State happy.
Replace Comp with another Benefit program
While it is an option, it is recommended, that the employer who wishes to Exit the Comp system implement some type of benefit program. This program should provide money for Medical expenses, disability payments, specific amounts for Death & Dismemberment, and money for legal defense and settlement. A package can be $100,000 to $1,000,000 combined single limit for Medical, AD&D, and Disability, and up to $1,000,000 for legal defense and settlement. Minimum of two years.
This makes Employees happy.
Secure ERISA document describing Benefits
In order to help protect you from legal questions concerning the application of the Benefit plan, it is highly recommended that the Employer purchase an ERISA document written specifically for his particular Benefit plan. Some Benefit plans come with an ERISA document. An ERISA document can be written for you by an attorney.
This makes the Federal Government happy.
Install a Quality Safety Program
Perhaps the most important part of becoming a Responsible Non-Subscriber… The employer’s best defense against a negligence claim is a Quality Safety Program. [In order for the employee to win a case against an employer, he must prove negligence.]
This will make YOU happy.