19 Jan Auto Repair Workers Comp
Auto Repair Workers Comp
Workers Comp is a large overhead expense for Auto Repair shops that have employees. This makes it especially important to review your policy to make sure you are getting the maximum discounts available. We will go over the basics of Workers Comp for your Auto Repair Shops.
Auto Repair Workers Comp – Classifications
Auto Repair Shops, like any business, need to review their policy to make sure their employees are correctly classified. This is very important for Auto Repair shops because the difference in premium between different employee types is substantial. To maximize savings, make sure your clerical employees are classified as clerical employees. This seems obvious, but many Auto Repair shops do not clarify the different employee payrolls, which in turns raises their premium.
Auto Repair Workers Comp – X Mod
After a few years of continuous Workers Comp coverage, your Auto Repair shops may be eligible for a Modification Rate, or X Mod. X Mods are a premium rating modifier that is calculated by the Workers Compensation Insurance Rating Bureau of California. Having a good loss history will bring your X Mod down and in turn save you money. This makes the X Mod a very important tool with respect to saving money on your Workers Comp.
Auto Repair Workers Comp – Loss History
As mentioned above, having a low X-Mod can mean substantial savings on your Workers Comp premium. The X Mod is a calculated by comparing your Loss History against similar business’s loss history. If your loss history is lower than the average, your X Mod goes down. This means it is very important to work with your employees to avoid claims or reduce the severity of claims. There are many safety measures you can implement to help with this, including safety meetings, protective equipment, a return to light duty plan, and more.
If you would like to learn more about Workers Comp for your Auto Repair Shop, give our specialist a call 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.
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