Of course, you understand that you\u2019re supposed to make monthly payments, but there\u2019s this thing that shows up on your first payment called a \u201cdeposit.\u201d\u00a0 What is that?\u00a0 Is it a down payment?\u00a0 Is it something else you have to pay in addition to the down payment? \u00a0What is going on?<\/p>\n
The answer is: it depends\u2026. Let me explain.\u00a0 Whether the deposit is part of your premium or in addition to your premium depends on which insurance company you\u2019re with.<\/p>\n
The good news is that literally almost all companies include the deposit as part of the premium, which you will pay at the end of the policy, term or in the beginning.\u00a0 In other words, when they say \u201cdeposit\u201d they are really saying \u201cdown payment.\u201d<\/p>\n
There is only one company that I know of that requires you to pay a deposit in addition<\/em> to the premium, and that is the State Compensation Insurance Fund.<\/p>\n State Compensation Insurance Fund (more commonly known as State Fund) is a special insurance company.\u00a0 They are chartered by the State of California to insure businesses that for whatever reason cannot get insurance from any other company.\u00a0 As it turns out, State Fund is this largest provider of workers comp in California.\u00a0 (Why the insurer of last resort is the biggest insurance company is a topic for another day).<\/p>\n The way State Fund works is this:\u00a0 Your initial payment is made up of the deposit, taxes & assessments, and the first month\u2019s payment.\u00a0 State Fund holds your deposit for the entire year.\u00a0 If you decide to renew with them,\u00a0they will figure out a new deposit amount based on your previous year\u2019s payroll, and take the money from your already-paid deposit and apply it to the new one (this is often called a \u201crolling deposit\u201d).\u00a0 If you don\u2019t renew your policy, they will hold your deposit until the final audit.\u00a0 If the final audit results in you owing them money, they will take it from the deposit.\u00a0 If at that point there is any money left in the deposit, you get it back.<\/p>\n But for the rest of you in the standard insurance market, don\u2019t worry: that deposit is really just a down payment; more premium paid up front, just like the rest of your insurance policies.<\/p>\n That’s how a workers compensation deposit works.<\/p>\n \n","protected":false},"excerpt":{"rendered":" You’re a business owner with employees, and you just […]<\/p>\n","protected":false},"author":3,"featured_media":3260,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3,7,13],"tags":[2,14],"class_list":["post-2114","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-insurance","category-liability-insurance","category-workers-compensation","tag-business-insurance","tag-workers-compensation"],"_links":{"self":[{"href":"https:\/\/finfrockweb.com\/gis\/wp-json\/wp\/v2\/posts\/2114","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/finfrockweb.com\/gis\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/finfrockweb.com\/gis\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/finfrockweb.com\/gis\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/finfrockweb.com\/gis\/wp-json\/wp\/v2\/comments?post=2114"}],"version-history":[{"count":0,"href":"https:\/\/finfrockweb.com\/gis\/wp-json\/wp\/v2\/posts\/2114\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/finfrockweb.com\/gis\/wp-json\/wp\/v2\/media\/3260"}],"wp:attachment":[{"href":"https:\/\/finfrockweb.com\/gis\/wp-json\/wp\/v2\/media?parent=2114"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/finfrockweb.com\/gis\/wp-json\/wp\/v2\/categories?post=2114"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/finfrockweb.com\/gis\/wp-json\/wp\/v2\/tags?post=2114"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}