Workers Comp Insurance
E-WorkersComp.net shops over 100 “A” rated insurers for workers comp insurance, Liability and Bonds. Lower your cost as much as 37%. Contact us online or by phone about purchasing a workers comp insurance policy. Expect straightforward advice and recommendations to the product best for your business.
Workers comp insurance is a means of protection for employers and employees in the event of a job-related injury or death. It ensures fixed payment amounts for specific injuries, both guaranteeing assistance to employees and protecting employers.
Protect Your Business
Without workers comp insurance a jury in any lawsuit brought against an employer could award exorbitant punitive damages for negligence. Workers Comp insurance guarantees payments for job-related injuries or deaths, but it also generally requires employees and their families to waive their rights to sue the employer. The cost of insurance can potentially save a great deal.
In addition, most businesses are required to purchase coverage. Most states require that a business with more than 3 employees have a policy.
Rates and Premiums
Calculating the rates and premiums for Workers Compensation insurance involves a complex process that depends on the type of business, its risk factors, the number of employees and the business’s claims records.
Each business is assigned a manual rate that’s related to the type of work performed and the risk for injury; a factory or construction business will have a higher rate than an office where most employees sit at desks. The rate is typically calculated per $100 of payroll, although some states calculate by the number of hours employees work. If there are different types of occupations within a business, separate manual rates apply to each type. Multiplying the manual rates by the total payroll for qualified employees equals the base premium. There is also an experience modifier that can increase or decrease the premium.
Classification codes determine the manual rate for Workers Comp insurance. The National Council on Compensation Insurance (NCCI) provides an extensive list of codes based on either a business type, such as trucking, or a particular occupation that exists across many industries, such as clerical employees. Businesses that involve numerous occupations receive separate classification codes for each type, and each code has its own manual rate. The codes are based on years of statistics regarding injuries within the business or occupational type.
The experience modifier plays a significant role in determining insurance premiums. It adjusts the manual rate up or down based on the number of injury claims an employer files. A company with an average number of claims pays 100 percent of its manual rate. Businesses with excessive claims incur a surcharge, meaning they’ll pay more than the average for their business type. This might equal, for example, 135 percent of the base manual rate. A company with few claims might pay only 76 percent of their assigned manual rate. The modifier encourages businesses to ensure job safety by offering a lower manual rate for filing fewer claims. The experience modifier is calculated on a three-year rolling basis so that no single year excessively affects premiums.
Purchase a Policy
E-WorkersComp.net is a private insurance agency that provides Workers Comp insurance in 46 states. Because state laws are different for Workers Comp insurance it is important that you discuss coverage for your business with an insurer who is well-versed in state statutes. Speak with an agent by phone, or apply online to request a quote.
- Stand-Alone Policy: Some carriers require bundled insurance policies that also cover liability or other business needs. This policy type refers to coverage obtained only for Workers’ Comp. A stand-alone policy may also involve coverage in excess of the amounts required by law.
- PEO/Employee Leasing: A PEO, or Professional Employer Organization, is a company that handles human resources administration for other businesses. They may administer payroll, benefits, Workers’ Comp or other elements, allowing business owners to manage the business itself. By effectively leasing employees to a PEO, a business may qualify for lower insurance rates than would otherwise be possible; a PEO handling Workers Comp for a number of businesses can qualify for discounts due to the large total number of employees.
Exemptions refer to employees who do not require Workers Comp coverage. Exemptions may apply to corporate officers, independent contractors, commissioned employees, family members, sole proprietors and businesses that fall below a minimum number of qualified employees. The laws vary by state.
Typically, a business must register or file an application through the state to request an exemption; there may be a filing fee. The appropriate state agency or division will review the application and determine eligibility. If found eligible, the exemption will be granted; however, exemptions typically require periodic renewals.