Text us at: 385.351.8000

About Your Policy: Utah



Definition of Employee

For workers' compensation purposes, an "employee" is anyone, including a contractor, subcontractor or contractor laborer, who works for an employer in providing the goods or services of a business. For premium calculation purposes, employers may exclude from their payroll base any subcontractor or contract laborer for whom they have obtained a valid certificate of workers' compensation insurance.  
Regarding subcontractors, state law states:

If any person who is an employer procures any work to be done in whole or in part for the employer by a contractor over whose work the employer retains supervision or control, and this work is a part or process in the trade or business of the employer, the contractor, all persons employed by the contractor, all subcontractors under the contractor, and all persons employed by any of these subcontractors, are considered employees of the original employer for the purposes of workers' compensation.

To avoid additional premiums because of work performed by subcontractors, obtain a certificate of insurance verifying workers' compensation coverage from all subcontractors working for you before beginning work on the jobsite. A certificate of insurance verifies that the subcontractor has workers' compensation coverage of their own. WCF Insurance will assess a premium charge if you do not provide certificates of insurance showing coverage for your subcontractors during the time they work.

Sole proprietors and partners

The requirement to report uninsured subcontractors includes sole proprietors and partners who do not have employees of their own. These sole proprietors may purchase a workers' compensation policy of their own, thus enabling them to provide evidence of valid coverage. Sole proprietors who have no employees and who do not wish to cover themselves may purchase a one-year exclusionary, or waiver, policy for $50 from The Utah Labor Commission.

Corporate Officers and Directors

Corporate officers and directors are automatically covered unless they choose, in writing, to exclude themselves. They are subject to certain limitations outlined in the instructions on the front of the payroll premium report. Premium will be charged on covered corporate officers regardless of their level of activity within the corporation. This is directly opposite of sole proprietors and partners who are automatically excluded from coverage, unless they opt in by way of written request.

Employees Working Outside of Utah

Workers' compensation coverage provided by WCF Insurance may cover employees who are hired in Utah but are working temporarily outside of Utah. Generally, your WCF Insurance policy does not cover employees who are hired or who work regularly outside of Utah. You must determine whether workers' compensation coverage provided by WCF Insurance will be accepted in the jurisdiction where your Utah employees are temporarily working. If you have questions about coverage, please contact your WCF agent. For more information on obtaining coverage outside of Utah click here. 



Classifications and Rates

WCF Insurance, like all other workers' compensation carriers in Utah, uses the classification system designed and maintained by the National Council on Compensation Insurance (NCCI). NCCI has established basic classifications for most types of businesses and industries.

NCCI also assigns loss cost (base rates) for each classification code. These rates are based on the loss experience of companies with employees assigned to this code. It is important that employers are assigned to the proper classification to protect the integrity of the rating system and ensure that employers are charged a rate reflective of their exposure.

If you have any questions concerning the classifications assigned to you, please call your agent or  WCF Insurance directly at 385.351.8000 or toll free 800.446.2667.
Premium Calculation

When the underwriting department prepares an insurance proposal, they use information from the application to calculate annual premium. The estimated annual premium is determined by multiplying the estimated annual payroll in each classification by the rate for that classification. 

Example: $100,000 (payroll) x .1641 (rate for classification) = $16,410 (premium)

A WCF Insurance auditor may review the policy during the coverage period or after the expiration date to determine the final premium. The policyholder will then be billed for any additional premium due, or be refunded premium paid in excess of the final premium.


For the specific audit period, payroll is reported as gross, not net. For questions on what is included and excluded in payroll, visit our FAQ below.
Adjustments to premium

The number and dollar value for claims on your policy may affect the ultimate cost of your workers' compensation. A single claim will not adversely affect an employer's individual manual rate, but may affect possible premium adjustments. There are several possible premium adjustments that may affect your final premium:

1.    Experience Modification Factor (e-mod) - The e-mod factor is calculated by NCCI based on your payroll and claims history. Customers paying $3500 in premium for two of three years of the experience period, or $7000 in premium in one year of the experience period are eligible. If your claims were higher than expected, the e-mod will be higher resulting in a higher premium. If your claims were less than expected, your premiums will be less. Your company will retain this factor even if you change insurance carriers.
2.    Minimum Premium – For some employers, the actual payroll and rates for the assigned classifications may not generate enough premium to cover the costs of providing insurance. A minimum premium is charged for these policies.
3.    Association Participation Agreement – A premium discount is available to customers who also belong to Associated General Contractors of Utah, Utah Home Builders Association, Utah Manufacturing Association, Utah Roofing Association or Utah Trucking Association. 
4.    Premium Size Discount - Available to customers whose annual premium is greater than $5000.
5.    Schedule Rating - Optional premium adjustments for customers paying more than $10,000 annual premium based on the characteristics and management commitment to safety of the individual employer.


The Terrorism Risk Insurance Program Reauthorization Act of 2015 (TRIPRA) extends the federal terrorism risk insurance program. That program, initially enacted in 2002, reimburses insurance companies for some portion of insured commercial property and casualty losses resulting from acts of terrorism, both foreign and domestic. The Utah Department of Insurance has approved NCCI filings that allow carriers to charge premium for both the terrorism and catastrophe (other than certified acts of terrorism) loss exposures. As of 1/1/19, the rate for these charges is $0.005 per $100 of payroll for terrorism and $0.01 per $100 of payroll for catastrophe.



What is Workers' Compensation Insurance?

Workers' compensation insurance provides no-fault coverage, which under Utah law, allows employees who are injured on the job to receive benefits outlined in state statutes regardless of who caused the injury. In return for providing workers' compensation coverage for their employees, employers receive exclusive remedy protections. This means that, in most situations, employees cannot sue employers for damages for workplace injuries.

Coverage is divided into two categories: (1) workers' compensation insurance and (2) employer's liability insurance. Workers' compensation insurance covers medical expenses and reimburses employees for wages lost due to a work-related accident. Employer's liability insurance protects employers from lawsuits brought against them by employees who were injured in job-related incidents. As with all types of insurance, there are some conditions and exclusions to both. Call your agent or WCF Insurance with any questions.

Who Needs Workers' Compensation Insurance?

Utah law requires that employers who have one or more employees (full time, part time, temporary or seasonal) obtain workers' compensation insurance. Employers who hire workers' for certain household and agricultural duties should refer to Section 34A-2-103 (4-6) of the Utah Code to determine their requirements. There are other limited exceptions. Officers of corporations are considered employees of the corporation and are required to be covered by workers' compensation insurance. Officers of a corporation may elect to withdraw from the workers' compensation system by purchasing a $50 waiver policy from the Utah Labor Commission. 

What is WCF Insurance?

WCF Insurance has insured Utah employers since 1917. WCF Insurance is a non-profit mutual insurance company managed by a board of directors and financed entirely by premium payments from customers and investment income.
WCF can arrange workers' compensation insurance coverage for Utah employers in other states as well. Coverage is provided by insurance companies doing business outside of Utah. All workers' compensation insurance carriers in Utah, including WCF Insurance, are regulated by the Utah Insurance Department and the Utah Labor Commission.

What is the Utah Insurance Department?

The Utah Insurance Department regulates all companies providing insurance coverage in the state. The Insurance Department approves premium rating plans used by workers' compensation insurance carriers. Premium rates charged for workers' compensation insurance in Utah are revised annually based on statistical data provided by the National Council on Compensation Insurance (NCCI).

What is the Utah Labor Commission?

The Utah Labor Commission is the state regulatory agency that adjudicates disputes between injured workers' and their employers/insurance carriers. In Utah, less than two percent of claims are litigated. These cases are assigned to an administrative law judge to determine what benefits, if any, an injured worker is entitled. In some cases, employer representatives will be asked to provide testimony and records regarding a claim in adjudication. The Utah Labor Commission is also responsible for ensuring that every Utah employer has workers' compensation insurance or provides coverage through an approved self-funded program.

Click here to learn more about Basic Workers' Compensation Law.

What is payroll? What do I include in payroll?
Reported gross, not net, payroll must include:

  • Wages/salaries 
  • Retroactive wages
  • Commissions and draws against commissions
  • Bonuses
  • Stock bonus or purchase plans
  • Holiday, vacation and sick pay
  • Statutory insurance or pension plans
  • Piecework
  • Profit sharing and incentive plans
  • Hand/power tool allowance (see exclusions)
  • Value of rental house or apartment provided for employee
  • Meals and lodging received as part of pay
  • Store merchandise, certificates or credits
  • Employee payments to cafeteria (IRC 125), retirement or savings plans
  • Davis-Bacon Act wages
  • Annuity plans
  • Any expenses not incurred as a valid business expense

Other forms of payroll are excluded, including:

  • Employee tips/gratuities 
  • Group insurance 
  • Pension plans
  • Active military duty
  • Severance pay except for time worked and accrued vacation
  • Employee discounts on goods purchased
  • Reimbursed expenses and flat expense allowances, except for hand/power tools
  • Supper money for late work
  • Uniform allowances
  • Third party sick pay
  • Invention and discovery rewards
  • Employer-paid perks, such as automobile, airline tickets, incentive vacation, club memberships, property or service discounts, and event tickets
  • Employer payments to employee retirement, savings, cafeteria (IRC 125) or salary reduction plans
  • The premium portion of overtime wages

What do I do if I hire employees out of state or have employees temporarily in other states?

Every state can have different laws regarding this. Call your agent or WCF as soon as possible to find out ho w to address these issues.

What is the minimum premium payment?

Minimum premium varies by state and class code.  .

What happens if my policy cancels?

WCF Insurancemust notify the Utah Labor Commission anytime a policy cancels. It's very important for you to pay your premiums on time and to maintain insurance coverage. The Utah Labor Commission can impose large fines for employers who do not maintain workers' compensation for their employees.

My company belongs to a local trade association; do I receive a discount on my premiums?

WCF Insurance partners with several trade associations (Utah Motor Transport Association, Utah Manufacturers Association, Associated Builders and Contractors, Associated General Contractors, Utah Home Builders Association and Utah Roofing Contractors Association) to offer their members a discount on premiums. To qualify for the discount, members must:

  • Be a current member of the trade association. Develop and implement a written safety program.
  • Attend a minimum of two safety seminars annually conducted by WCF Insurance or the trade association. Click here for a list of pre-approved safety courses. 

For more information visit the Association Discount page.

This company was issued a secure rating by the A.M. Best Company, click for additional details

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