Cheap Workers' Comp Insurance

Comparing worker's comp policy quotes from multiple carriers and through different methods like agents and online comparison sites is the easiest way to save. At minimum get pricing from five different options and get a good mix of traditional carriers, regional insurers, specialty providers for your industry and state programs for the most comprehensive comparison.

Using the wrong class code for your employees and is the single most common reason why small companies overpay for workers' comp. This is due to it being one of the main multipliers for calculating your rates (class code * payroll). To ensure you save the most, do the following:

• Review your industry code and class codes on your quote or policy
• Check if any employees should be classified as clerical, sales, or remote since these codes are significantly cheaper
• Separate low-risk jobs from high-risk job roles instead of lumping them together

This by itself can save you thousands of dollars per year, especially if you are in a high risk industry area like contracting.

All business insurance providers offer bundling discounts that can stack for every policy you get with the same company. Depending on the workers' compensation insurer you choose, you can save up to 15% per policy added to a bundle.

Payroll is the second main multiplier that affects the workman's comp insurance rates you get and any fluctuations can cause you to incur higher costs when it comes time for an audit. Making sure to use accurate payroll reporting throughout the year, opting pay-as-you-go billing and adjusting projected payroll if staffing changes mitigates some of the costs.

If you have established safety programs that are enforced and are in writing, you can both lower workers' comp premiums by having fewer claims and serve as proof of risk reduction action you can report to insurers.

If you meet the threshold in your state, there will be an experience modification factor score applied to your business where under 1 gets you cheaper rates and above raises them. To avoid a high MOD score, you should do the following:

• Report injuries immediately to avoid costly delays
• Use return-to-work programs
• Help employees receive prompt care
• Monitor claim reserves

In many states, owners can exclude themselves from workers’ comp coverage to save money and most sole proprietors don't need a policy by law. Exemptions vary widely by your location and even county you do business in, so look into and consult an agent on where you can take advantage to get lower workman's comp premiums.

Whenever your worker's comp policy, like any other business insurance, comes up for renewal your insurer reviews your company's risk profile. In addition to this automatic review, be sure to provide updated safety documentation, address any claims with corrective measures, and ask whether your business qualifies for a risk class downgrade or lower rate tier.