choosing workers' compensation insurance

clock April 30, 2021

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6 Factors to Consider When Choosing Workers’ Compensation Insurance

Almost every state requires employers to have workers’ compensation insurance for their employees. Workers’ compensation or workers’ comp insurance is a type of insurance that protects employees from work-related injuries and illnesses. That way, both employers and employees don’t have to pay any out-of-pocket costs should the unexpected happen.

Choosing workers’ compensation insurance is easier said than done for most business owners. With the plethora of insurance providers available today, picking the right one can prove a tad challenging. If such describes your predicament, worry not; we’re here to help.

In today’s post, we’ll be highlighting a couple of crucial factors you need to consider when picking out workers’ comp insurance for your business.

1. Find an Experienced Insurance Agent/Broker

Buying workers’ compensation isn’t as easy as waltzing into an insurance provider’s office and getting your policy. For the best results, you’ll need an insurance agent or broker, and not just any insurance agent for that matter. If you want the most value for your money, you’ll need a competent and experienced insurance agent.

As a rule of thumb, find an agent who’s not only experienced but is also an expert in your particular industry. The agent should clearly understand all workers’ comp jurisdiction that applies to your specific industry. That way, you can protect your employees without having any run-ins with the law.

2. Understand What the Policy Covers

There are plenty of workers’ comp insurance providers, each of them with different policies. Generally, workers’ comp coverage breaks down into two parts. The first part covers bodily work-related injuries, while the second covers work-related illnesses.

Some of the benefits include medical aid, disability, and lost wages. However, most insurers only cover part of lost wages. Insurers offer these benefits without regard to who was at fault as long as the injury or illness is work-related.

That said, it’s worth noting that workers comp doesn’t cover injury or sickness resulting from criminal activity, drug use, and self-inflicted wounds. Liaise with your insurance agent for more information about the policy’s scope of coverage.

3. Create a Safety Plan

While it’s true that workers’ comp covers work-related injuries, it doesn’t mean you should throw safety out the window. Ten times out of ten, prevention is better than cure. That’s why you need to create a comprehensive safety plan to mitigate work-related injuries.

The good news is that you don’t even need to create a complex safety plan. Simple stuff like worker training, proper signage, and ladder safety go a long way in enhancing workplace safety and reducing accidents. The fewer accidents you have, the fewer the number of claims, which can help reduce your insurance premium.

Remember, your employees are the lifeblood of your business, and losing them is like losing your business. About 5,333 workers succumbed to work-related injuries in 2019 alone. If you don’t want your employees to end up a statistic, create a safety plan as soon as you can.

A solid safety plan will help you pick a workers’ comp policy that covers highly probable accidents. That way, you don’t have to pay extra for accidents that will unlikely occur.

4. Do They Have Safety Reward Programs

Some insurance carriers have safety reward programs for businesses with few claims over an extended period. This is another reason why you should create a concrete safety plan; so, your insurer can award you for prioritizing safety.

Most policyholders award cashback for your concerted safety efforts.  Some reputable insurance providers can offer as much as 25% discounts on your worker’s compensation premiums. How’s that for reducing operating costs?

Before picking a workers’ comp insurer, inquire whether they have any reward programs. If not, ask about any discounts, offers, or refund policies. You want an insurance provider that gives bang for the buck, so look out for any incentives that help you cut costs.

5. Insurance Cost

The cost of insurance is a crucial factor no sane business owner can overlook. While it’s true that workers’ comp might cost a pretty penny for large companies, premiums vary widely across insurance providers. Comparing insurance fees is a must if you want a workers’ comp policy that’s within your budget.

As you’ve probably guessed, the larger the company, the higher insurance premiums you’ll have to pay. That’s where reward programs and other incentives really come in handy. Ensure you explore your options and pick the insurer that gives the most bang for your buck.

6. Customer Service

How the insurer treats their clients is a crucial factor to consider when choosing workers’ compensation insurance. You want an insurance provider that’s easily accessible, answers all your queries, and shows concern for your business. Steer clear of insurers that are only in it for the cash.

That said, always go for insurers that offer digital services. This helps save a lot of time and frustration when filing your claims. The insurer should have an online customer portal where you can:

  • Report injuries
  • Pay your premiums
  • File and manage claims
  • View reports and documents like audit reports

If there’s one thing for certain, you can never go wrong with an insurance provider with stellar customer service. Just remember to keep the rest of the factors in mind before you go all-in.

Choosing Workers’ Compensation Insurance Made Easy

Be sure to keep the above in mind the next time you’re choosing workers’ compensation insurance. Although cost is a crucial determining factor, don’t make it your primary consideration. Stay away from insurers with very low premiums; most times, you get what you pay for.

Every business needs proper workers’ comp insurance to protect its workers and maintain operations. For comprehensive workers’ comp insurance, contact us today. You won’t be disappointed.

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