As a business owner, you probably know the benefits of workers' compensation insurance.
Moreover, in many states, it is illegal for businesses to operate without carrying workers' compensation insurance for employees, with few exceptions.
Whether it's your first time as a new business or you want to switch to a new insurer, getting workers' compensation insurance can be confusing. Here are some tips to guide you.
Know what it covers
Understanding what workers' compensation entails will go a long way in helping you resolve issues that may surface later.
Workers' compensation insurance covers employer liability, protecting employers from lawsuits resulting from injuries suffered on the job.
Workers' compensation insurance also covers employee benefits. It helps pay medical bills, lost wages, disability benefits, and lost wages.
Understand your state's insurance requirements
Each state sets its regulations for workers' compensation insurance, with requirements and penalties differing significantly from state to state.
For example, in Georgia, only businesses with three or more employees are required to have workers' compensation insurance. Whereas, in New York, virtually all companies must have workers' comp insurance for their employees. Cost also varies state by state.
If your business requires workers' compensation, it's recommended to work with an agent that understands your state requirements to help you stay compliant.
Know your classification codes
Class codes are the basis for determining workers' comp rates. They are three or four-digit codes and are assigned by the state Rating Bureau or the National Council on Compensation Insurance (NCCI).
Every job duty has a code, which agents use to classify employees and assess job risk. Choosing the wrong class code will result in incorrect risk classification and inaccurate premiums.
With over 800 class codes in the NCCI's system, knowing the correct code can be tricky. An independent agent with expertise in workers' comp insurance can assess your employees' job descriptions and correctly classify them.
Have information ready
If you're shopping for a new workers' compensation insurance, you'll need information from your previous coverage, such as the classification codes and experience modifiers.
Your insurance agent will use this information to calculate your premium and expedite the process.
Check for discounts and savings
While there's little you can do to influence how much your workers' compensation insurance premium will be, ask your insurance agent for potential discounts and savings you're eligible for.
Generally, there are rewards for businesses that maintain workplace safety and establish safety training programs.
Getting your insurance
Joyce Insurance has been helping to find insurance coverage that offers the most protection for more than 20 years. Our agents will discuss with you to understand your unique peculiarities and help you get the policies that suit you at the most competitive pricing. Connect with us today to know how best we can protect you and your employees!