Carriers Encouraged to Be Flexible Regarding COVID Issues

Thursday, June 18, 2020 | 0

The Nevada Division of Insurance is asking workers’ compensation carriers to work with businesses and ensure that coverage costs are commensurate with actual exposure during the COVID-19 crisis.

A notice published in the summer edition of the Workers’ Compensation Section newsletter said social distancing and other efforts to contain the spread of COVID-19 could minimize or eliminate risks covered by comp insurance.

The Division of Insurance said it approved a rule allowing employers to designate payroll for people who are being kept on staff but who aren’t actually working. That pay would be excluded from premium calculations.

The agency also said Nevada law allows carriers to suspend premium payments owed by employers that have closed their doors but continue paying their employees.

“Workers’ compensation insurers are encouraged to consider the impact on rates of any idling of workers by insured employers, and insurers should, if requested by the insured employer, conduct an audit in order to determine whether the insured is entitled to any adjustment in premium due to the idling, furloughing, laying off or other dismissal of workers,” the division’s notice reads. “Insurers are encouraged to allow self-auditing, self-reporting and/or virtual audits in lieu of physical audits to the extent that physical audits are impracticable.”

WCS newsletters can be found here.