| How do I buy worker's compensation |
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Oregon has a "voluntary competitive market," meaning that all 300 plus companies licensed to sell workers compensation insurance in this state can either volunteer to provide coverage (hence, the term "voluntary") or they can all turn you down.
Because they can all turn you down, and because Oregon requires that employers carry workers´ compensation insurance on their employees, there has to be a place to obtain the coverage, i.e., a guaranteed market. This is commonly known as the assigned risk pool.
There are currently 2 companies who process policies and claims for the pool, which is also known as the "Oregon Workers Compensation Insurance Plan." These companies also write policies in the "Voluntary Market." The companies only participate in the pool. Premiums paid to these companies go to the pool. The companies are refunded the costs by the State of Oregon.
Before you can apply to the pool, you must first be turned down by one company for Workers Compensation coverage. We suggest that if you have any other form of insurance (even automobile coverage or homeowners) that you first contact the insurance agent for those coverages. Sometimes, that agent may be able to place your coverage in a group for whom he writes. This is beneficial since you have an established credit history with the agent, you already have your foot in the door. Sometimes you may be able to get them to write a "business package," which can also include workers compensation coverage. Examples of companies who write homeowners and auto coverage and also write workers compensation are Farmers and SafeCo.
If your agent gets turned down by the companies he/she writes for, we suggest that you try calling the companies who currently have special small-business programs. They are listed on our "short list" identified with an "*" by their name.
If you get turned down by one insurer and do not want to try calling any more of the 300 plus other insurers, you may, with one refusal, apply to the Oregon Insurance Plan (called the Assigned Risk Pool), 1 (800) 622-4123. You may apply by telephone by selecting the "Assigned Risk" option on the recording. Ask them to fax you an application, or you may request them to take your application over the phone. Any insurance agent can help you complete the faxed application.You can also access the application online at www.ncci.com .
You may request the short list and long list of insurers who are licensed to sell workers compensation, by calling the Small Business Ombudsman for Workers´ Compensation, (503) 378-4209. Once you have this list, we suggest you locate a copy of either the Portland Yellow pages (because the majority of the companies are based in Portland) or the Yellow pages from the nearest large city in your area, and call the agents working for those companies to see if they can place your coverage.
If your current coverage is in the pool, you may at any time pursue coverage elsewhere in the "voluntary market". If you find an insurer outside of the risk pool who is willing to take your coverage, you must give 30 days written notice to your current insurer in the risk pool of your intent to cancel your Risk Pool policy. You will be subject to minimum premium for the period of time your policy was in force but you will suffer no short-rate cancellation penalty for breaking the insurance contract before it expired.
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