Beacon modifies insurance plan

The state’s largest provider of workers’ compensation insurance, Beacon
Mutual Insurance Co., is taking steps to prevent corporate officers from
being unintentionally excluded from their company insurance plan when
the state’s new workers’ compensation law goes into effect Jan. 1.
The company, which provides workers comp. coverage to more than 65
percent of Rhode Island businesses, will add a voluntary compensation
endorsement to all existing corporate officers who did not specifically
opt out of their workers’ compensation insurance.
The move is in response to a provision in the new law, which says
everyone in all Rhode Island companies must be covered by workers comp.
insurance except for the president, one vice president, corporate
secretary, and treasurer, unless they opt to be covered.
Because of the ambiguity in the law, it is now unclear whether
corporate officers who are covered under their company policies now will
continue to be covered in the new year if they fail to include
themselves in the policy.
With this program, Beacon is seeking to prevent officers from going
without coverage.
“Regardless of the interpretation situation, we want to assure all of
our policyholders that their corporate officers will continue to be
covered,” said Donald Vass, president and chief executive officer of the
company. “Our blanket coverage is in effect immediately.”