Lowering Your Work Comp Rates

30 Jul Lowering Your Work Comp Rates

Lowering Your Work Comp Rates

Workers Compensation in most cases is mandatory if you have employees, and as most business owners already know, Workers Comp can be quite expensive. We understand why you may be discouraged with the cost of Workers Comp, however, there are ways to reduce the cost of Workers Comp and make it affordable for your business.

How To Lower Workers Comp Insurance Rates; Check Your Class Code!

Many business owners do not realize that Workers Comp rates are primarily based on two factors, payroll and class codes. Obtaining the right class code could be critical to lowering your Work Comp Rates. For example, if you are a contractor that specializes in carpentry, there are two different class codes that can apply to your employees. One class code(5403) is designated to employees that make less than $29 per hour. The alternate class code for carpentry(5432) is designated for employees that make over $29 an hour. In the case of carpentry, the difference in rates from 5403 and 5432 can be as high as 50%. That said, just by having the wrong class code for your policy means you may be paying as much as 50% more than you should! You can check your class code on the Workers Compensation Insurance Rating Bureau website: www.wcirb.com and take the first step in lowering your work comp rates!

How To Lower Workers Comp Insurance Rates; Stay Insured!

One common mistake we see when assisting business owners with lowering their work comp rates is that many do not realize the importance of having continuous coverage. We often see clients that have lapses in coverage of just a few days from not paying their bill on time. Being uninsured for just a day or two may not seem like a big deal, but it is. When an Insurance Broker approaches a preferred carrier in regards to lowering your work comp rates, many of the carriers want to see at least three years of continuous coverage. This is important because as a business owner, you want to have your Workers Comp with a preferred carrier whenever possible. Preferred carriers often have lower rates than non-preferred carriers like the State Compensation Insurance Fund(SCIF). This is step 2 in lowering your work comp rates!

How To Lower Workers Comp Insurance Rates; Train Your Employees!

This tip may seem obvious, but we often see claims occur from accidents that could be easily avoided. One of the best ways to assist in lowering your Work Comp Insurance rates is to having a clean loss history, i.e. not having claims. As a business owner, take the necessary time to properly train your employees in lifting techniques and safety procedures. It is in the best interest of everyone to avoid injuries and claims, so if you don’t know how to properly train your employees, check with your Workers Comp carrier as they often have resources available to assist you in properly training your staff. This is step 3 in lowering your work comp rates!

If you have any questions about Workers Comp or how to lower your Workers Comp Insurance rate, give us a call! You can reach our Workers Comp specialist at 925-297-4829.