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Business owners know Workers Compensation coverage is a necessary part of operating your own company. Many, however, do not realize how many options are available to them regarding pricing and coverage.
Completing the form below will help us show you those options. As always, feel free to contact us directly.
We look forward to working with you to find the right coverage at the right price.
The Main Reasons Workers Comp is a Pain for Business Owners...
...and two reasons it doesn't have to be.
Assumption - "There are only one or two companies offering Workers Comp insurance, and their pricing and coverage is basically the same."
This is incorrect. Over the last several years, the number of companies offering Workers Comp has increased dramatically. With that increase has come price competition, and with that comes agents able to more effectively shop the market for better pricing for their clients.
Solution - employers, don't assume that because you have had the same Workers Comp insurance carrier for years, and they are the incumbent in your state that you have the best pricing and coverage. It's a whole new game out there, and you owe it to yourself to have an experienced agent take a fresh look at it.
Audits. Workers Comp premium is calculated for the coming policy year based on W2 payroll projections/estimates. At the end of the policy year, the estimates are compared to actual payroll numbers.
Needless to say, these figures rarely match, and employers often times end up receiving a bill for additional premium, since the actual payroll was higher than the estimates upon which the premium was based.
Solution - This one is easy. There are many insurance carriers - Travelers and Hartford being among them - who offer the capability of reporting the accurate payroll numbers electronically every pay period. This way, the Work Comp premium can be adjusted throughout the year with no audit and no surprises at the end of the policy term.
In some ways, Workers Comp's biggest drawback is that it's mandatory. I don't mean that the fact that it's mandatory is a bad thing...quite the opposite, in fact.
It is an incredible benefit and protection for workers, providing coverage for medical expenses, lost wages, etc.
The premiums are paid by the employer.
Unfortunately, since it is mandatory and has been around long enough, it has become part of the background noise of the employer/employee relationship.
The good news for employees is that it's there if the time ever comes that you need it.
The good news is for employers, as I mentioned, is that the static cost and the past inconvenience of dealing with Workers Comp for the employer no longer has to be the norm.
Two positive, fresh things regarding Workers Comp. Who knew?
The best to you and yours, and I hope this information was helpful.
Talk to you soon.
- David Tracy of Lighthouse Brokerage