This year Wisconsin contractors and manufacturers with apprenticeship programs are saving 2% on their Workers’ Compensation insurance premium.
The 2% credit (maximum $2,500) is a no-brainer for any business to claim with an active apprenticeship program, but there are few qualifications to keep in mind along with the knowledge that some insurance carriers are opting out of the savings altogether.
In an atmosphere of record low unemployment rates, and the Foxconn behemoth on the horizon, the state is incentivizing apprenticeship programs in hopes they will help fill the growing trades’ skills gap. In March of this year, Wisconsin passed Assembly Bill 508 which slashed regulations in the trades requiring ratios often higher than 4 journeymen to 1 apprentice down to 1-to-1. In September of last year, financial incentives were announced, granting a 2% Apprenticeship premium credit on Workers’ compensation insurance for Wisconsin business going into effect next month.
Claiming the 2% credit for your business is not much of a hoop to jump through, but on the other hand Wisconsin isn’t handing them out like candy. The credit only applies to insurance workers’ compensation polices with effective dates of 10/1/2018 or later. If your policy has already renewed in 2018, you’ll need to change your effective date (not always recommended) or wait until next year to claim the credit.
Your agent must notify your insurance carrier that you are eligible for the credit and provide evidence of participation in an apprentice program administered by the Wisconsin Bureau of Apprenticeship Standards for a minimum of 6 months. This means to claim the 2% credit on 10/1/2018 your apprentice program must have been approved by WBAS and running since March of 2018.
Not Every Insurance Carrier is Opting-In
If your insurance policy is in the pool, your company is automatically qualifies for the program. If your business is in the private market, which most are, there is a chance it might not…
When the Office of the Commissioner of Insurance announced the credit in 2017, they made it clear that this was a voluntary program for the private insurance market. While all carriers were automatically enrolled into the program, it was left up to carriers if they wanted to opt-out.
At first there was a bit of waffling, but in the end a majority of carriers have decided to opt-in. That said, a large minority are opting-out, some of whom are big players in the construction and manufacturing markets. R&R Insurance keeps an updated list of carriers opting-in and out.Contact an agent to see if your carrier is opting-in for the 2% credit.