Below is a table that shows the main touchpoints when employment status impacts your policy. Use this table as an overview of each stage in your policy, employment status significance, and action you can take to help limit large variances in the price we quote and your final bill.




At quoting: you want to start or renew workers’ compensation coverage with State Fund.

We calculate premium based on various factors like (but not limited to) your business type, loss history, payroll, and number of employees. So employment status is key information from the start.

Our underwriter may ask for information or supporting documents (additional to your application), before or after issuing a quote and binding coverage.

If you believe you utilize (or will utilize) independent contractors or subcontractors (as of July 1, 2020), review the ABC test. Report payroll for all individuals for whom all three prongs, A, B, and C, cannot be met.

Providing accurate information from the start helps ensure your quote matches your final bill as much as possible.

During the policy: after coverage begins and before it ends.

A net change in the number of employees you have (due to hiring or an employment status change), during the policy term, may result in a variance in the amount of premium we quote and the final premium we bill for.

Same as above, and:

If you learn that workers you previously thought were independent contractors are actually employees (per the ABC test, as of July 1, 2020), tell your broker or underwriter right away.

We can adjust your remaining bills, spreading the potential price increase over time. This may prevent you from receiving a final bill that is bigger than expected. This will also help you estimate future insurance costs and avoid disruption to insurance coverage during the policy term.

Claim filed: we receive a claim on your policy.

Our claims professionals act with urgency to pay what we owe and defend what we don’t. One of the first things we do is determine liability. We must establish whether the claimant is an employee for workers’ compensation purposes. We may ask for documentation such as (but not limited to) copies of contracts, receipts, signed timecards, 1099 forms, and professional licenses.

Maintain and share accurate records with us to streamline this process and ensure we make a correct liability decision.

Audit and final billing: after your policy ends.

We may conduct an audit to verify information, including (but not limited to) your business type, loss history, payroll, and number of employees. During an audit, we review your records to establish the actual payroll and to make sure we applied the correct classification codes to determine your final premium. We then produce a final bill.

Because the original premium was an estimate, the audit may result in a change of premium and/or classifications for the business operations. Information from the audit will generate either a bill or a refund.

If you keep us informed throughout your policy about net changes in employees and additional payroll, you should receive a final bill close to what you anticipate.

If there are any big changes that come up towards the end of your policy (for whatever reason), we will explain any variances and work with you to resolve as quickly as possible so that you feel heard and valued.