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It is used whenever there is a change of ownership, including a sale or transfer of assets. Proof of Coverage: When we issue a workers` compensation policy, we send the information to the state data collection organization, and they share the policyholder`s information with the state to prove coverage coverage. If the employer`s name or business type changes, proof of coverage may not be accurately reported. As a result, the employer may receive a letter from the state requesting proof of coverage. Completing Form ERM-14 to provide appropriate notification of a change in name or entity type can help avoid confusion. Form ERM-14 is typically used to report changes in ownership resulting from sales, mergers, and other events. Combinability: Companies that share majority stakes can share an employee`s compensation policy and e-mod. When a business undergoes a change that affects the ownership structure, it can affect whether it is combinable. The national data collection body shall take this decision on the basis of the information provided on Form ERM-14. Staying on a solid foundation and focusing on a strong future Workers` compensation insurance is one of the most sensitive lines of insurance to the experience of the past.

Before this form was used, a business owner with a poor history of worker safety (and increased workers` compensation costs) could transfer assets from one business to another to start over, without bad experiences, in order to increase those costs. Especially in higher-risk industries, the difference between “experience change factor” companies can have a significant impact on costs. Therefore, it made sense to transfer assets to another company to make a fresh start when it was legal. The purpose of Form ERM-14 is to track the movement of significant shareholders from one company to another. A senior manager of a high change factor for workers` compensation (the mod) can now bring this high mod into their new business. Workers Comp is the most experience-sensitive line of insurance. At Gordon Atlantic, we can project the impact of claims or no claims at all on future labor costs, conveying a compelling economic message to convey a culture of safety. We work closely with companies on industry-specific risk mitigation and security programs. A secure job is a competitive workplace, as lower personnel costs mean lower labor costs than your peers, which translates into price advantages. Aside from fundraising gymnastics, how can a company reduce the cost of workers` compensation? It depends on the simplicity or complexity of the property, but we`re not going to sweeten it. It is intrusive and looks for many details of the entity`s structure, which can be tedious to find. One thing we know: when a manager/shareholder of a company with little comp experience becomes an officer/shareholder of another company, the experience can follow from one unit to another..