According to the National Safety Council, the average workers’ comp claim costs $42,008. This number is a staggering reflection of just how expensive an injury can be for both an employer and an employee. Workers’ compensation insurance helps minimize the portion of these expenses that are passed directly to an employer and offers a shield of protection against erroneous claims. This is only true if you find an effective policy, though. If you opt for an insufficient policy, it won’t do much good. Follow this guide to help find the best workers’ comp insurance so that you can be confident in your coverage.
Know the Requirements of Your State
The first step to finding the right workers’ comp insurance is investigating your state’s requirements and ensuring that you are in compliance. There is no uniform federal standard indicating what coverage employers must carry, but rather, states are individually empowered to set their own standards. Keep in mind that if your business operates across state lines, you must comply with state guidelines in each state you do business in.
Keep Your Policy Handy
If you’re currently insured but shopping for a new policy, you need to keep your current policy handy while you look. Your standing with your current insurer will inform the rates and coverage that a prospective insurer can offer your business. How? Businesses that have been in operation for several years may be designated as an “experienced modifier.” This means that there is sufficient data collected to provide reports regarding your claim history, including whether you are a higher-than-average risk or expense to your insurer.
Look for Discounts Where You Can
Conversely, if you are a lower-than-average risk to an insurer, this is a great opportunity to seek out a discount that can save you tons in the long run. A low claim rate isn’t the only quality that may save you money, though. There are many discounts available on workers’ comp insurance — you just have to look for them! If your business maintains a workplace safety training program, or if you pay in larger installments, you might end up paying less on your overall premium expenses.
Choose the Right Class Code for Coverage
Yet another important factor to consider is classification of your employees when you are buying workers’ compensation insurance. This is done by selecting a class code — a number that is three or four digits — to represent each staff member’s duties. The National Council on Compensation Insurance currently maintains about 800 class codes to represent various job responsibilities, so it can be difficult to identify the correct codes, but this is essential to securing the right coverage at the best price. Do your research to correctly classify each employee before you proceed with buying coverage.
About InsureMyWorkComp
InsureMyWorkComp is a digital brokerage that helps clients find the right workers’ compensation solution for their business needs. Unlike other online platforms, we will help you to work with an agent who can provide you the right solution for your risk profile. Our staff has over 50 years of workers’ compensation underwriting and sales experience, and we are confident that we will provide you the support that you need. For more information or to get a quote, contact us today at (855) 340-9138.