While there are some exceptions for smaller businesses or certain industries, carrying workers compensation insurance is a requirement for most businesses. Many employers view it as simply another invoice that must be paid each month. However, the right policy can help you manage risks and improve company safety policies. Here are a few things to keep in mind when evaluating workers compensation solutions for your business.
Cost of Coverage
There are numerous things that can impact the amount you pay for workers’ comp coverage. Your industry, safety record, and risk mitigation strategies all play a role. Keep in mind that while insurance premiums might influence which policies you consider, they shouldn’t be the only factor that affects your decision. You’ll also want to consider policy features, customization options, and deductible amounts.
There are three main types of deductibles allowed in workers’ compensation policies. They range from full coverage to deductibles of $1 million or more.
Risk Reduction Strategies
Both your cost of coverage and the amount of deductible you feel comfortable with can be impacted by your company’s safety record. For example, a lack of injuries and accidents often translates into a lower premium. Also, if you are relatively confident that there won’t be multiple claims in a policy year, you might be willing to go with a higher deductible.
You will have many choices when searching for workers comp coverage. It helps to work with an agent you trust to find a policy that fits your needs and your budget.