3 Common Reasons Technology Workers' Compensation Applications Are Declined

It’s a nightmare scenario: you’ve got an opportunity to sign a contract for a high-paying job with a big client, but to do so, you need to have Workers’ Compensation Insurance in place – yesterday. Luckily, you find TechInsurance, apply for coverage, and rest assured knowing you’ll be covered within 24 hours.

Except when you wake up the next morning, YOU DON’T HAVE WORKERS’ COMP COVERAGE. Your application has been denied and you have no idea why. You’re worried that you won’t land the contract and won’t get that revenue infusion you so badly need.

Deep breath. We can help.

Unfortunately, our system isn’t yet perfect. It sometimes declines IT companies and consultants who would otherwise qualify for coverage because of mistakes and miscommunications that happen during the application process. Here are three of the most common that we see. Be sure to avoid these, and your application process should go much more smoothly, meaning that you secure coverage fast enough to land that contract.

3 Things to Avoid When Applying for Technology Workers’ Compensation Insurance


  1. Choosing the wrong industry or profession. Right now, you can start our application by choosing your industry and profession in a double drop-down menu. For IT professionals, you first choose “Computer, Web, IT Services, & IT Staffing,” then your specific service within that industry. But we know: sometimes your mouse slips. If you’re applying from a mobile device, you might accidentally scroll past the right industry. Choosing the wrong industry is one of the most common reasons our technology applicants get coverage declines. Here’s an insider secret: we’re very good at writing Workers’ Compensation for IT businesses. We’ve been doing it since 1997, and we’ve got it down to a science. So if you get a message saying we can’t cover you, shoot an email to the person who sent it, and we’ll see if we can fix the problem. Fast.
  2. Saying that you’re doing “temporary” work. This is another common declination trigger. The insurance carriers we work with only sell policies with a one-year term, and they see “temporary” as meaning “short-term,” as in only needing coverage for a few months. From their end, that triggers an automatic decline. If you’re planning to work temporarily for one client and temporarily for another, but you’ll still need coverage for a full year, don’t use the word “temporary” in your application. Again, if you think you may have been declined for this reason, reach out to an agent and we’ll see if we can fix the problem.
  3. Living in a monopolistic state. If you live in Ohio, Washington, North Dakota, or Wyoming, we can’t offer you Workers’ Compensation Insurance. That’s because those four states have monopolistic funds. Businesses operating in those states can only get Workers’ Comp policies from the state itself. If you applied and you’re based in one of these states, that’s why you were declined. To get coverage as quickly as possible, go to your state’s Workers’ Comp page.

The bottom line: we understand that when IT companies need Workers’ Compensation Insurance, there’s often a tight deadline. If you were declined for coverage but didn’t think you should have been, let us know! We’re here and we’re happy to help correct the situation. If you’ve received an email from an agent, reply to that with any questions. If you haven’t yet received an agent email, drop a line to [email protected], and we’ll get to you as quickly as we can.