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Housing, Lodging or Rent (Hotels, Motels, Prop. Mgmt., etc.)

Whenever hotels, motels, and property management companies are audited, you need to address whether or not any housing or lodging was provided to employees.

Certain class codes will include the following in their description: “When lodging is provided by the employer, the total remuneration shall include the market value of such lodging to the employee.” Whenever this phrase appears in the description for a class code being used, you must address whether or not the insured provided housing or lodging to any of their employees.

If the insured does provide housing or lodging to any of their employees, then this amount needs to be included in the total exposure. Typically, you will include the “Market Value” of the lodging provided in the class code that the employee is being placed in. (You will add this amount using an adjustment to the worksheet.) Very rarely, the lodging/housing may be included in the employee’s wages; if this is the case, then you need to specify this. If lodging/housing is not provided by these kinds of companies, then you need to include a note specifying that there is no lodging provided.

In addition to hotels and motels (9050) and property management companies (9011, 9015, 9007, etc.), housing and lodging should also be addressed for mobile home parks (9010), churches/mosques/temples/synagogues (8840), self-storage warehouses (8290), and housing authorities (9033). Remember, you should always check the WCIRB description for a class code; the description will include special rules such as this that are applicable to that code.

Whenever you audit a hotel, motel, property management company, or any of the other types of businesses listed above, you must include any lodging provided to employees in the total exposure, and always include a note in the description of operations addressing housing/lodging.

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