Workers’ compensation is an area of law that involves paying for injuries and other damages when an employee gets hurt on the job. The average cost of a workers’ compensation claim has been about $42,000 for the past few years.
By law, employers have to have workers’ compensation insurance policies so that they’re prepared to pay for these injuries without hesitation. Each year, you need to ensure you’re getting the best deal on your insurance by getting a workers compensation quote from several companies.
How much does workers comp insurance cost? What goes into getting a quote? We’re happy to explain.
Keep reading so that you’re prepared with the best policy.
Consider the Type of Work Your Employees Conduct
When seeking a workers comp insurance policy, start by understanding the type of work that your employees carry out. Naturally, jobs that are more laborious and dangerous will require more insurance.
At the time of a quote, you’ll punch in a classification code for your industry. This is a four-digit code that corresponds with the type of work that your employees do, such as Heating Ventilation, and Air Conditioning (HVAC), roofing, plumbing, delivery driving, and others.
Do the Math With Your Payroll
Next, assess your payroll to calculate a ballpark figure of how much you’ll pay for your policy. In the worker’s compensation insurance industry, the formula you need to know is the Total Annual Payroll, divided by 100, multiplied by the workers’ compensation rate.
You will find the workers’ compensation rate after you type in the code for your industry. Each state sets its own rates for each industry, and they’re subject to change each year.
Understanding these formulas will help you find the right insurance so that you’re always prepared to handle a workers compensation claim.
Assess What You’re Covering
You have to also get to know the type of insurance for workers comp that you’re looking for. Companies have some features that they need to have to satisfy the minimum workers’ compensation insurance requirement, and you can opt for additional coverage based on your discretion.
Here are some of the main types of workers comp insurance coverage you can shop for:
- Coverage to cover medical expenses, such as surgery, doctor visits, and prescriptions
- Disability claim benefits
- Loss of wage
- Coverage for ongoing care, such as physical therapy
- Death benefits
Knowing what type of coverage you need will help you secure the best plan quote.
Get a Handful of Different Quotes
Finally, always get at least 3 to 5 commercial workers compensation insurance quotes before settling on a price. This will give you the chance to shop around and see which companies offer the best rates.
When in doubt, make sure that you also get in touch with a workers comp lawyer that can clear things up for you and help you get the best from your policy.
Find a Workers Compensation Quote
These points will help you when you’re in the market for a workers compensation quote. Your business will be secure and protected, and you’ll always have help when someone gets hurt when working with you.
Begin with these points and reach out to us if you need help with this or any other legal matters.