Workers' compensation pays for bills covering injuries and illnesses to employees on the job. All employers must comply with their state laws on carrying the right amount of this insurance.
Here are essential workers comp buying tips to avoid difficulties with filing claims.
If your company provides work to employees that involves travel to other states, you should look into getting an All States Endorsement. Otherwise, your workers' comp policy only pertains to work in your state. Different types of injuries, such as to visitors of your establishment, are covered in a general liability insurance policy.
One of the key workers' comp buying tips to remember is to avoid overspending on an insurance policy by creating clear descriptions of company roles so that it accurately reflects worker comp classification codes. Different codes have rates based on risk factors associated with specific work activities.
You should regularly update your payroll estimates for the following year. If personnel changes throughout the year, factor these changes into future payroll estimates. Not all businesses maintain the same number of full-time vs. part-time employees regularly. Be aware of coverage requirements for hourly and temporary workers. Since there are different payroll processes for different job classifications, it's best to segment your payroll into distinct groups of employees.
Shopping around for a new workers comp policy while you have an existing one allows for a smooth transition. You'll need to provide your new insurer with details from your existing policy, such as class codes. Experienced employers often include their Experience Modifier value assigned to them by insurers. Loss runs are reports on claims history listing all claims paid for your employees for a specific period.
Getting lower workers comp insurance rates is possible by asking the provider if discounts and credits are available. Some discounts that insurers offer businesses include the company's participation in workplace safety programs, new employee training sessions, and various payment plans.
Workers comp insurance providers audit clients at the end of each year, to determine if they are eligible for policy renewals. You should review your policy at this time to make sure it's free of any errors. It will allow you to update the characteristics of your payroll.
A class code has three or four digits that define specific job duties. Be as accurate as possible when selecting class codes since about 800 unique class codes are generated by the National Council on Compensation Insurance (NCCI).
If your business is starting or you don't have time to research all the complexities of workers comp, it's best to work with an experienced expert. An insurance agent who networks with multiple providers is better positioned to help customize your policy.
Use these workers comp buying tips to strengthen your workers' comp coverage while getting the best possible pricing. For more information on workers comp and other types of business insurance, contact our team at Riverbend Insurance. We are happy to help you secure the right plan for your business.
Also Read: What Is Workers' Compensation Insurance & Why Do You Need It for Your Business?