Knowledge Center

Every business benefits from adequate Commercial General Liability (CGL) coverage. CGL protects your business if a client is injured on your premises or theirs.  It also covers property damage at your client's site.  Even if your company is negligent or liable for damage, injury or loss to another's property, reputation or health, your business can keep its assets if it is adequately insured.  CGL will not cover workmanship, the carriers assume you know what you are doing. 

Workers Compensation -

Worker's Compensation (WC) covers your employees if injured.  In the State of Georgia you are not required to have WC unless you have three (3) employees or more.  If you are a single individual, why do you need to have WC?  By law you do not need to carry WC. If you work under a contract, that contract will usually require you to carry WC regardless if you are the only person in the company.  The reason why is that the company you are working for does not want the monies paid to you for work done applied to their WC premiums.   

Insurance Audit -

An insurance audit is much different than an IRS audit.  The audit is performed to determine the actual insurance exposures for the coverage provided and concluded with a report of the findings and whether additional premiums are needed.   If you are a contractor or payroll based risk, they are checking your actual payroll records (or money paid out for services done on your company's behalf) to what is listed on the policy.  If the actual records are higher than on the policy you will be invoiced, if lower you may be able to receive a refund on the premium of the over paid amount.  This is based on the carrier's terms and conditions.  Worker's Compensation is audited annually usually within two weeks of expiration or renewal.  General Liability is also subject to audit.  If you do not comply with an audit or fail to pay the audit invoice, you will not be able to obtain coverage until your company complies, per State of Georgia law.

W-2 vs 1099 -

Within the IRS, a W-2 and 1099 are very different from a taxation stand point.  Insurance carriers consider W-2 and 1099s to be the same, unless the 1099 has their own insurance coverage.  Any money you pay the uninsured 1099 will be subject to increase your premiums.