Lowering Your Painting Company’s Workers Comp Rates

Lowering Your Painting Company’s Workers Comp Rates

Painting Companies spend a lot of money on Workers Comp. While Workers Comp is required, there are ways to get the rates down. We will explain some of the most useful ways to lower your Painting Companies Workers Comp rates.

Lowering Your Painting Company’s Workers Comp Rates – Lapses in Coverage

Avoiding lapses in coverages is one of the most important steps you can take in lowering your Workers Comp rates. The carriers that tend to have the best rates require Painting Companies to carry 3+ years of continuous coverage without lapses. There are steps you can take in avoiding lapses in coverage. You can pay your entire year’s premium up front to avoid cancellation for non-payment. Alternatively, you can set up automatic payments to assure your monthly invoice gets paid
on time.

Lowering Your Painting Company’s Workers Comp Rates – Classifications

Painting companies have several different class codes that may apply to them. It is critical to classify your employees under the correct class codes to assure you are paying the correct rates. Simple changes in classifications can net 50%+ reductions in premium. For example, if you are paying your employees $24 per
hour or more, you can classify your employees as 5482. The 5482 class code carries a much lower rate than employees that are classified as 5474, which is reserved for employees that are paid under $24 per hour. Lastly, if you have any clerical or outside sales employees, you should classify them as such. While clerical
payroll may be a small part of your overall payroll, this simple change can save you a lot of money.

Lowering Your Painting Company’s Workers Comp Rates – X Mod

If you carry Workers Comp for a few years with a net premium of $10,000 or more, you may be eligible for a Modification Rate, or X Mod. X Mod’s are special rate modifiers that are calculated by the Workers Comp Insurance Rating Bureau of California. Your X Mod is essentially a calculation that compares your loss
history to the industry average. If your loss history is better than the average, your rate goes down. Obtaining and maintaining a low X Mod is one of the most effective ways to reduce your Workers Comp premium.

If you would like to learn more about X Mod’s, Classifications, or other Workers Comp rating factors, give us a call!

You can reach our Workers Comp specialist at 925-297-4829!

All information is general in nature and is intended to provide guidance only. It is up to you to request specific coverage options, the agency and agent do not bear this responsibility. Always read the policy if there is a questions about coverage or a claim. If any information herein should conflict with your actual policy’s specific language, the policy language will be controlling.

If You Are Serious About Saving Money While Building A Long Term Business Relationship Please Request A Quote And We Will Be In Touch With Your Shortly!