Tips for Workers’ Compensation Policyholders During COVID-19

September 2, 2020||inBusiness Insurance|business insurance, workers comp, workers compensation insurance

The COVID-19 pandemic has caused many businesses to adjust or reduce their operations. Workers may have transitioned to working from home, having reduced hours, have been furloughed – some with or without pay, or have been laid off.

Maintain Accurate Payroll Records for Proper Workers’ Compensation Insurance Premium

Tips for Workers’ Compensation Policyholders During COVID-19
Click here to submit an inquiry to Murphy Insurance or call us at 800 222 8711
With this upheaval, it is essential to maintain accurate payroll records to ensure you are charged the appropriate premium for your Workers’ Compensation coverage. Workers’ Compensation policies are audited at the end of each policy term, and premiums will be adjusted based on your employee payroll and type of work performed over the year.

In particular, make sure your records account for the following:

  • Any changes in payroll, including a reduction in staff or hours.
  • If you have furloughed employees with pay during the business disruption, keep separate payroll records for these employees for the time they continue to be paid and are not working for you. Furloughed payroll will have a reduced or zero rate when calculating the Workers’ Compensation premium, depending on state Workers’ Compensation rules.
  • If you have furloughed workers within the state of Massachusetts, Massachusetts has the additional requirement below:
    • An employer who is making payments to paid furloughed workers must provide to their workers’ compensation carrier, within the later 60 days of the approval date of this rule or 25 days after the employer begins making payments to paid furloughed workers, a list of all paid furloughed employees, which shall also include the employee’s average workers’ compensation classification, weekly wage, furloughed date, and anticipated date of return to work.

Tips for a Change in Operations

Many businesses cannot run their typical operations because of their states’ response to COVID-19, and instead of closing, they may adapt their operations to maintain a flow of income. Other businesses have changed their operations to help respond to the pandemic by providing essential products. For example, many distillers have adjusted their operations to distill spirits and manufacture hand sanitizer to help with the shortage. If your business has had a material change in operations during COVID-19:
  • Contact your insurance agent to see if this change in operations could impact how your Workers’ Compensation policy is priced.
  • Note changes in your employees’ roles as part of your payroll reporting, as they may be assigned to a different class code. Are employees engaging in work that is materially different from their prior role?

Maintain Workers’ Compensation Coverage

If you’ve made the difficult decision to lay off all employees during this time, it is essential to maintain Workers’ Compensation coverage so you are protected when your business resumes operations. Maintaining accurate payroll records will ensure your premiums reflect your reduced business operations and staff during this period. More importantly, if you cancel your policy, you may find purchasing a new one difficult or more costly when you resume operations as insurance carriers evaluate new customers on several factors, including whether the business has had continuous prior coverage.

Read Other Blog Posts

Black History Month Contributions in the Insurance Industry

Honoring Black History Month: Contributions in the Insurance Industry

Honoring Black History Month by highlighting the pioneering Black leaders and entrepreneurs who shaped the U.S. insurance industry. Learn how their efforts expanded access to coverage, promoted financial literacy, and strengthened communities through economic empowerment and generational wealth building.
Read more
Taking Notes 1200

Top 5 Ways to Prevent Employment Practices Liability Claims

Employment practices liability (EPL) claims—such as alleged discrimination, harassment or wrongful termination—can be complex and costly, leaving impacted employers with lasting financial and reputational fallout. Taking steps to reduce EPL exposures and promote a positive workplace culture can help prevent such claims and related lawsuits. Here are five best practices for employers to consider.
Read more
Increase 1200

U.S. Average Breach Cost Hits Record High of $10.22 Million

The average cost of a data breach in the U.S. has reached a record $10.22 million, even as the global average fell 9% to $4.44 million. Nearly all breached organizations experienced operational disruption, with most taking over 100 days to recover and 65% still not fully recovered. While AI-related breaches remain rare, most stem from poor access controls, making AI systems an increasingly attractive target for attackers.
Read more
Groton Hill Music Center

Business Spotlight: Groton Hill Music Center – Inspiring Community Through the Power of Music

Groton Hill Music is one of our most inspiring community partners—a vibrant nonprofit arts center where creativity, education, and connection thrive. From world-class performances to inclusive music education, they enrich the region every day. Murphy Insurance is proud to support their mission with tailored business coverage that protects their people, programs, and purpose.
Read more
Why Huge Lawsuit Verdicts Matter

Why Huge Jury Verdicts Matter for Your Business Insurance

Huge jury awards, known as nuclear verdicts, are on the rise, forcing insurers to rethink coverage limits, premiums, and risk management. Reviewing liability policies now can help businesses stay protected and avoid unexpected financial losses.
Read more
Business Insurance Issues 1200

10 Insurance Issues Businesses Should Keep Top of Mind in 2026

Staying ahead of evolving risks is essential for every business in 2026. From property valuations to cyber threats and liability coverage, these 10 insurance considerations can help you safeguard your operations and plan for the unexpected.
Read more
Plan a Safer Workplace With the 2026 National Safety Observances Calendar

Plan a Safer Workplace With the 2026 National Safety Observances Calendar

Build a stronger safety culture with our 2026 National Safety Observances Calendar, a simple planning tool to keep workplace safety top of mind all year. The downloadable PDF includes key observance dates, plus training and awareness resources to help reduce accidents, improve productivity, and lower insurance costs.
Read more
Our 2026 National Health Observances Calendar Plan For Wellness All Year

Our 2026 National Health Observances Calendar: Plan For Wellness All Year

Staying informed about national health observances is a simple but effective way to promote wellness, spark meaningful conversations, and support healthier communities. Our 2026 National Health Observances Calendar makes planning easier by highlighting key health awareness days and observance months throughout the year.
Read more
2026 HR Compliance Calendar 1200

The 2026 HR Compliance Calendar Every Business Needs

Staying compliant with employment laws and regulations is critical to protecting your business. To help simplify this often complex responsibility, Murphy Insurance has created a 2026 HR Compliance Calendar, a downloadable planning tool that outlines key HR-related deadlines and compliance reminders throughout the year.
Read more
PreviousNext

Visit Our Business Insurance Page

Business Insurance

Murphy Insurance stands as your steadfast partner in safeguarding your business from unforeseen challenges in today’s dynamic business landscape. In an era where comprehensive business insurance is not just a prudent choice but a vital one for ensuring the long-term stability and security of your enterprise, we are here to offer our expertise. Running a business inherently entails various risks that can potentially impact your financial stability and reputation. Learn more about our comprehensive business insurance solutions, which are meticulously designed to protect you from these potential threats, granting you peace of mind necessary to focus on the growth and prosperity of your business.