What is required to become a member?
The requirement for membership into the LAC Self Insured Fund:
- Review the Program Review and understand how a self-funded plan operates.
- Provide at least 3 years’ prior workers’ compensation history (“3 year Loss-Run Report”).
- Provide the names of at least five (5) fund members that will recommend applicant for membership.
- Have a minimum annual premium of $2,000 (minimum payroll $15,000).
- Join the Louisiana Agricultural Corporation, L.L.C. ($200 annual membership dues).
When is coverage bound?
Coverage is bound when your completed application is date stamped in our office along with references, premium, and payment of dues (pending application approval by the Fund Administrator).
If I begin the application process am I obligated to join?
No. You are under no obligation to join/bind coverage once the application process begins.
What does “include/exclude” on the application mean?
An owner/partner/officer of a company or operation can choose to exclude them self from coverage. Each owner/partner/officer is automatically included in coverage currently at $55,700 annually per owner/partner/officer of the company.
However, the option of exclusion is given only to an owner/partner/officer. The choice to be excluded from workers’ compensation coverage will need to be expressed. Only an owner/partner/officer can choose to be excluded under the policy; an employee cannot be excluded from coverage.
What do I do once I have the names of my references for the application process?
Each applicant will need five (5) references who are current members of the LAC Self-Insured Fund. Contact the LAC Self-Insured Fund with the list of names and we will send a reference letter and form for each of your references to sign and send back to us. You do not need to obtain actual letters of reference.
What is an “additional insured”?
When an applicant has more than 50% ownership in another company and the applicant wants coverage for both companies/operations, we can add the second company to the policy as an “additional insured”. Although both companies are operated separately, both companies will have workers’ compensation on the same policy. The applicant(s) must have more than 50% ownership to add a company as an additional insured.
What if I hire/fire an employee during the year after my premium is paid for the year?
You have two (2) options:
- You can call to increase your payroll and pay the difference in premium due or
You can wait until that fund policy year is audited and pay the difference in premium then.
- Is there an age minimum for an employee?
You are required to follow the federal and state guidelines expressed for labor laws concerning employees. LAC Self-Insured does not impose any additional requirements or constraints on the employees of our insureds. However, younger employees are more likely to sustain an injury due to lack of experience and the lack of knowledge of the potential dangers. We request that younger employees perform less hazardous tasks to prevent the possibility of an accident.
What do I do if an accident happens and my employee says he/she is ok to keep working?
Stop and report the incident to our Claims Department immediately at 1.800.579.0202. It will not cost you anything to report the claim.
Can I hire a resident in another state?
No. All employees must be residents of Louisiana to be covered under your workers’ compensation policy with the LAC Self-Insured Fund.
Can my employees work outside of Louisiana?
Yes. As long as the employee(s) are current residents of Louisiana they can perform work duties in another state under your direction. Employees hired whom are residents of another state will not be covered under your work comp policy, no matter how brief their employment lasted.
When does the audit process begin?
The audit process begins when we send the Audit Paperwork to be completed. The paperwork is sent to your mailing address on file. Audits are completed as they are received in our office.
During the current year your payroll is estimated, and your premium is paid based on that estimated payroll. Once that year is audited we take your “estimated payroll” and compare it to the payroll you actually paid during that year, your “audited payroll”. Should your audited payroll be more than your estimated payroll you owe additional premium for that fund year. Should your audited payroll be less than your estimated payroll we owe you return premium for that fund year.
Why am I being audited the following year?
The audit is performed during the following year to give our members time to file their federal and state reports that are requested to complete the audit. For example, we send audit paperwork to be completed for the 2011 calendar year in March 2012 due by April 2012.
Do I have to pay work comp premium for a hired contractor?
It is your responsibility to request a copy of workers’ compensation insurance from all contractors. You must furnish proof that each subcontractor used during the policy period had insurance coverage in force for the policy period. You should make certain the certificates correspond to the time frame worked by the individual subcontractors.
If the subcontractor does not have valid workers’ comp insurance for work performed in Louisiana, you will be responsible for the workers’ comp premiums for these workers.
Do I have to pay work comp premium for my children?
No, if your children have some type of ownership in the operation/family business. You can choose to exclude them from coverage, but only if they have some type of ownership.
Yes, if your children do not have any ownership in your business and they are being paid through the company. If both are true, they will be treated as regular employees and their pay will be included in your payroll amount with the rest of your employees.
What is an H2A Worker?
An H2A worker is immigrant labor hired through a program which granted their work visa.
How do I know if an owner/partner/officer is included or excluded from coverage?
Each owner/partner/officer included in coverage will be listed under the “Additional Insureds” section of your billing; if their name is not listed, they choose to be excluded from coverage.
What is acceptable payroll documentation?
At least two (2) of these sources must be available to properly verify your remuneration OR your audit will be considered unobtainable:
- QuickBooks Reports: Payroll Summary, Employees Earnings Summary
- General ledger
- W-3 & W-2’s
- Individual or business tax returns (940, 941, 943)
- Unemployment reports
- Quarterly tax reports (all 4 reports)
- Copies of your 1096 & 1099’s
- Internal Reports used during the policy period.
Do I have to have an agricultural related operation in order to get Work Comp Insurance through this program?
Yes. Your operation must be agricultural related in order to obtain membership & workers’ compensation insurance through LAC Self-Insured Fund.
How does my policy renew?
Policies with LAC Self-Insured Fund automatically renew every year. Renewal billings are mailed in November of every year and due the following January 31st of every year. Coverage is effective until the member calls and cancels their coverage. To leave the LAC Self-Insured Fund in good standing you must call and cancel coverage.
What do I do when someone wants proof of my workers’ compensation coverage?
We will send them a Certificate of Insurance showing your work comp liability limits for the period. The person requesting proof of your work comp coverage will be the “Certificate Holder”. Call 1.800.798.2999 with ALL the following information about the Certificate Holder:
- Name/Company Name
- Mailing Address (to go on the certificate)
- Phone number
- Fax # or email address (to send the certificate)
- A description of the job you will be performing for them
My contractor says they are a member of the LAC Self-Insured Fund. Do I take their word for it?
No. Call 1.800.798.2999 to make sure they are still an active member and to make sure their coverage has not lapsed for lack of payment.
Call us BEFORE you hire them as a subcontractor because if the subcontractor does not have valid workers’ comp insurance for work performed during the policy period, you will be responsible for the workers’ comp premiums for them.
How do I update my contact information for my policy?
To update your contact information you can call us at 1.800.798.2999 or update your information through this website under Update Contact Information (Members only)
When is the annual meeting?
The Annual Meeting for LAC Self-Insured Fund is every year in February. Active members will receive a mailing stating the date, time, and location of the annual meeting. Inactive members will need to call 1.800.798.2999 to find out information regarding the annual meeting.
Are inactive members invited to the annual meeting?
Yes. However, you will no longer receive a mailing for the meeting. You will need to call 1.800.798.2999 and ask for the date and time of the meeting early February every year.
How long does it take to start receiving dividends?
Dividends are paid to each member after completing two years of membership, maintaining the minimum premium of $2,000, in the LAC Self-Insured Fund.