Do’s and Don’ts with WC applications
- APPLICATION: Always use the ACORD 130, in FL 130-FL.
- ID: Federal Employer Identification Number (FEIN) is required for all corporations or LLCs. The account is reserved by their FEIN for most carriers. For sole proprietors or partnerships, a social security number is used. Never enter the social security number for an officer or employee on the application even though there are spaces for that info. Privacy concerns outweigh requiring this on a permanent form.
- ADDRESS: Foror multistate risks, we must have a physical address for each state even if it is an employee’s residence.
- RATING INFORMATION: Listing the # of employees by class with payrolls is helpful for the underwriter to see the average payroll per employee. Payroll amounts must make sense. Full-time payroll must meet or exceed the minimum wage.
- EMPLOYERS LIABILITY:
- INDIVIDUALS INCLUDED / EXCLUDED: The section on the ACORD is often misunderstood. This is not for employees’ information, just the owner’s and officers. It is important to mark each officer as INC or EXC to indicate if their payroll will be included or will they file for officer exemption. If they are included, list the class and payroll for the officer. The payroll amount for included officer must be at least the minimum allowed for an officer. In FL, it is $33,800 for construction classes. For non-construction classes the minimum allowed is $65,000 but will increase 1/1/26 to $67,600. Sole proprietors and partnerships are automatically excluded in most states. Note: Included officer’s payroll should also be listed under rating information section.
- NATURE OF BUSINESS / DESCRIPTION OF OPERATIONS: Listing exactly what they do is most helpful. The underwriter must be sure to use the correct NCCI classification. You can get that info by calling 1-800-NCCI-123.
- GENERAL INFORMATION: All questions should be answered. For most questions that have YES answer, the remarks section below this is best to list why yes. For example, for YES answer about the use of sub-contractors, we need to know the expected % of subs. This is factored against W2 payroll not revenue. Also, for all construction risks, we need to know the maximum height they will work.
- COMBINABILITY: Page three on the ACORD 130-FL there are two YES/NO questions that should be answered.
Still need more tips or help? Check out our Tips page online: Click Here. We also have a short video demonstrating the most important information needed on the ACORD: Click Here. Otherwise, just ask for help. We only do WC, so we do it better than most.