{"id":5743,"date":"2020-03-16T13:10:00","date_gmt":"2020-03-16T19:10:00","guid":{"rendered":"https:\/\/www.noyeshallallen.com\/blog\/?p=5743"},"modified":"2020-03-19T13:16:35","modified_gmt":"2020-03-19T19:16:35","slug":"should-you-cancel-workers-comp-insurance-when-you-lay-off-employees","status":"publish","type":"post","link":"https:\/\/www.noyeshallallen.com\/blog\/should-you-cancel-workers-comp-insurance-when-you-lay-off-employees\/","title":{"rendered":"Should You Cancel Workers Comp Insurance When You Lay Off Employees?"},"content":{"rendered":"\n

If a business downturn causes you to lay off employees, you might want to cancel your workers\u2019 compensation insurance. Workers\u2019 comp coverage is required when you hire someone. Without employees, it\u2019s overhead you would like to cut. <\/p>\n\n\n\n

But canceling your insurance isn\u2019t always the best move. Here\u2019s why. <\/p>\n\n\n\n

Three Reasons Not to Cancel Workers\u2019 Comp Too Quickly<\/h2>\n\n\n\n
  1. It\u2019s hard to scale up again.<\/strong> Do you expect the downturn to be temporary? You will need to re-apply for workers\u2019 comp when you hire employees again. This costs time, effort and money. <\/li>
  2. You may lose valuable dividends. <\/strong>MEMIC, Maine\u2019s largest workers\u2019 comp insurer, has paid dividends several years in a row. If you cancel, your business has to wait 3 years to start earning dividends again. <\/li>
  3. You may lose loss-free discounts. <\/strong>By canceling your policy, you lose the benefit of any loss-free discounts you\u2019ve earned. When you re-start your policy, it takes time to accumulate those discounts again. <\/li><\/ol>\n\n\n\n

    Cost-Cutting Alternatives to Canceling Your Workers\u2019 Compensation Policy<\/h2>\n\n\n\n
    1. Reduce estimated payroll.<\/strong> Workers\u2019 comp premiums are based upon payroll amounts. Layoffs mean lower payrolls, so it\u2019s fine to reduce estimates. This may create a refund without actually canceling your policy. <\/li>
    2. Change payment plans.<\/strong> Most workers\u2019 comp insurers offer installment plans. Spreading payments may allow you to better match cash flow without losing benefits.
      <\/li><\/ol>\n\n\n\n
      <\/div>\n\n\n\n

      Updating your Maine workers\u2019 comp policy may be smarter than\ncanceling it altogether. Closing your business, or have no plans to hire for\nmore than a year? Then it\u2019s proper to cancel your workers\u2019 comp insurance. <\/p>\n\n\n\n

      Maine Workers\u2019 Compensation Insurance Questions?<\/h2>\n\n\n\n

      For answers to your Maine workers’ compensation questions, contact a Noyes Hall & Allen Insurance agent<\/a> in South Portland at 207-799-5541. <\/strong>We\u2019re independent and committed to you. <\/p>\n","protected":false},"excerpt":{"rendered":"

      If a business downturn causes you to lay off employees, you might want to cancel your workers\u2019 compensation insurance. Workers\u2019 comp coverage is required when you hire someone. Without employees, it\u2019s overhead you would like to cut. But canceling your insurance isn\u2019t always the best move. Here\u2019s why. Three Reasons Not to Cancel Workers\u2019 Comp […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[21,47],"tags":[85,32,108,36],"class_list":["post-5743","post","type-post","status-publish","format-standard","hentry","category-business-insurance","category-workers-compensation-insurance","tag-business-insurance","tag-doing-business-in-maine","tag-hiring","tag-saving-money"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t