The national Workers Compensation guide covers the standard workers compensation and employers liability policy and how it is rated. This guide covers the Wisconsin rules under chapter 102 of the Wisconsin Statutes:

• who must insure
• the elections out
• benefits and the waiting period
• safety penalties
• cancellation notice
• Wisconsin's uniform rates
• the residual market pool

Who runs it

• The Department of Workforce Development (DWD), through its Worker's Compensation Division, administers the law.
• OCI regulates the insurers.
• The Wisconsin Compensation Rating Bureau (WCRB) is the licensed rate service organization.
• Wisconsin is not monopolistic. Employers insure with an authorized insurer unless DWD exempts them to self-insure (102.28).
• Workers compensation is a no-fault system and the employee's exclusive remedy against the employer, coworkers and the carrier, with limited coworker exceptions (102.03(2)). Claims against third parties are preserved, and the employer or insurer may share in the recovery (102.29).

Who must carry it (102.04, 102.07)

• An employer of three or more employees must insure.
• So must an employer with fewer who pays $500 or more in wages in any calendar quarter. That employer becomes subject on the 10th day of the first month of the next quarter.
• Farmers are covered employers if they employ six or more people on any 20 days in a calendar year.
• Every independent contractor is treated as an employee unless all nine statutory conditions are met.
• Elections out:
  • Sole proprietors and partners are exempt but may opt in by endorsement (102.075).
  • Up to two officers of a closely held corporation may elect out. If they have no other employees and both elect out, no policy is needed (102.076).

Benefits

• Temporary total disability pays two-thirds of average weekly earnings, within the state maximum (102.43(1)).
• Waiting period: indemnity starts on the 4th day. If disability lasts more than 7 calendar days, the first 3 days are paid too (102.43).
• The employee gives notice within 30 days. Late notice doesn't bar recovery if the employer wasn't misled (102.12).
• Safety violations:
  • If the employer violated a safety statute or order, compensation rises 15%, up to $15,000 (102.57).
  • If the employee failed to use safety devices or obey reasonable safety rules, compensation drops 15%, up to $15,000 (102.58(1)).
  • If an employee's violation of a drug or alcohol policy caused the injury, no compensation or death benefit is paid, though medical treatment still is (102.58(2)).

Uninsured employers (102.80 to 102.82)

• DWD pays injured workers of uninsured employers from the Uninsured Employers Fund, and the employer must repay it.
• An uninsured employer also pays the greater of twice the premium avoided in the past three years or $750.

The policy and cancellation

• A policy is read as covering all of the employer's workers compensation liability unless DWD consents in writing to something narrower (102.31(1)(b)).
• Cancellation: at least 30 days' notice to the employer, with notice received by the WCRB. It can take effect sooner when replacement coverage or an exemption order starts (102.31(2)(a)).
• Nonrenewal: takes effect 60 days after written notice to the employer and the department.
• The renewal premium notice comes 30 to 75 days before it is due (631.36(4)).

Rates and the Pool

• Workers compensation has its own prior-approval rate law (ch. 626) with uniform rates. Insurers must be WCRB members and use WCRB rates and forms.
• The Wisconsin Worker's Compensation Insurance Pool covers employers who can't get coverage in the voluntary market because of loss history or other conditions (619.01(3)). The WCRB administers it.
  • Pool rates are the same uniform rates used in the private market.
  • The agent acts for the applicant, can't bind Pool coverage, and Pool coverage can't be backdated.

Guaranty protection

Workers compensation claims against an insolvent insurer aren't subject to the Insurance Security Fund's $300,000 cap (646.31).

Common exam traps

• Coverage is required with 3 or more employees, or $500 in quarterly wages.
• Farms are covered at 6 employees on 20 days a year.
• The waiting period is 3 days, paid back after 7 days of disability.
• TTD is two-thirds of average weekly earnings.
• Safety violations change benefits 15%, capped at $15,000.
• WC cancellation takes 30 days, not the 10 days used for other lines. Nonrenewal takes 60 days.
• Rates are uniform WCRB rates with prior approval.
• An independent contractor must meet all nine tests, or they are treated as an employee.