New entity, experienced team
Insurers use the term new venture for businesses with little or no operating history under their current ownership. If you ran a similar company before, share that background; it can help underwriters get comfortable with the new entity.
Changes in ownership, mergers and new entities can also affect whether a prior experience modification transfers. Rating bureaus have specific rules for this, and the answer depends on the details of the change.
Joint ventures and project entities
Joint ventures formed for a single project may need their own workers comp policy or a specific arrangement among the partners. Contracts for these projects often spell out coverage and waiver requirements in detail.
Situations we see
- New LLC formed by an experienced owner
- Partnership or member changes
- Joint ventures for specific projects
- Business purchases and acquisitions
- Spin-offs of an existing company
- Franchise openings
New ventures and entities workers comp by state
Requirements and rating rules vary by state. Choose your state for the essentials, including who must carry coverage and who oversees it.
Frequently asked questions
Will my old company's experience mod follow me?
It depends on the ownership change and rating bureau rules. Sometimes it transfers, sometimes it does not. An agent can request a ruling when needed.
Do LLC members need workers comp?
Rules vary by state. Members may be included or excluded depending on state law and elections you make.
Does a joint venture need its own policy?
Often yes, especially for construction projects. The joint venture agreement and the project contract usually determine the requirement.