Workers’ comp requirements vary by state. For instance, this coverage is mandatory in all states except Texas. First find out what your state requirements are to avoid non-compliance.
The insurance company will require you to classify your employees based on their roles in the business. For each class, the insurer will assign a code, which will, in turn, determine the insurance rates.
When signing up for workers’ compensation insurance, you need to estimate your annual payroll, considering possible payroll fluctuations.
If you already have another workers’ compensation policy in place, keep it within reach. This is because your insurance provider will likely want to review it before renewing it.
To lower your workers’ comp premiums, you can ask for discounts if you have workplace safety and formal training programs. You can also lower these costs by choosing a favorable payment plan or reporting your payroll monthly.
The Insurance Information Institute (III) recommends reviewing your business insurance coverage annually. Therefore, during the annual workers’ comp audit, be sure to make changes to your policy where needed.
Ensure you choose the correct codes for your employees, mainly because this will greatly determine how much you pay for workers’ comp.
Purchasing workers’ compensation insurance can be hectic due to the many things involved. For instance, it may be difficult for you to classify your workers correctly unless you are an expert. To simplify this process, ensure you consult a workers’ comp expert for guidance.