Accidents happen. The more physical the work, the more accidents your business can see. But even low-risk office environments can carry risks. That’s why worker compensation insurance is considered mandatory insurance if you run a business with employees. But if you’re not careful, workers compensation could be one of the highest insurance costs your business takes on. Unless its carefully monitored, premiums can rise and fall without any warning or notice.
Thankfully, Crossroads Insurance knows how to put our years of workers compensation knowledge and experience to work for your business. We’ll help you identify the key area that is affecting your premiums and work with you to educate employees on safety practices that help lower your risk.
Why do workers compensation premiums go up and down?
The biggest factor that affects the amount you pay for workers compensation insurance is if your business has had any recent claims. But here’s something you may not know. Those claims also affect your claims in the future. Our job is to figure out how much. Some of the factor we look at to help you get a more accurate picture of where you’re at include:
- The total money paid out in claims over the years
- How much loss you’ve had by cause and nature of injury
- What your expected vs actual loss ratio is
- Risk management policies you currently have in place
- Identification of areas you can improve to control future losses
- What your “Return to Work” program looks like
- How you compare to industry benchmarks
What will workers compensation insurance cover?
Any hospital or medical expenses that are used to diagnose or treat a job-related illness or injury are covered under workers comp. Workers compensation will also offer employees disability pay if they are unable to work. This typically is about two-thirds of his or her regular pay.
How is my workers comp premium calculated?
Workers compensation premiums are usually calculated using a three-year span experience modification. If your company is large enough to have an experience modification, every claim will affect your mod factor and premium rates. Crossroads Insurance will help you determine your E-Mod/X-Mod number and explain how this number works into figuring your premiums. We’ll also give you tips and practices to implement that can lower your number and premium.