Hayden Electric Motors Inc. cut its annual worker's compensation costs $1,700 by excluding payments for its two top executives.
For years, the Anchorage motor sales and repair company, which has 14 employees, made worker's comp payments based on the wages of the president and the vice-president, as well as its lower-ranking employees. Then Hayden's insurance agent informed it that the state of Alaska is one of 24 states where it is possible for a company to exclude top officers from its premium computations.
Hayden Electric wrote its state worker's compensation board and was granted an executive-officer waiver. Any on-the-job accidents related to these top executives will now be covered by the company's regular insurance policy.
To find out whether your state is one of the 24 that permit executive officers to be excluded, contact the rating bureau of the worker's compensation board in your state or write the National Council on Compensation Insurance, 1 Penn Plaza, New York, NY 10119.