A start up guide to review average cost of workers compensation insurance
We live in an era of innovation. We also live in an era of stability. Big ideas need plans, permits, and people to transform into sell-able solutions. On the underbelly of innovation is a little thing called insurance.
In the United States, you are required to carry certain forms of insurance to do business. Among these types of insurance is worker’s compensation, the insurance that protects your company from accidents or injuries, among other things. While fiddling with the several required insurances (general liability, worker’s compensation) will always involve some sort of headache, here are some pieces of information that will perhaps reduce the time you spend getting worker’s compensation in place so your company can start working.
1. Give Yourself Time
· 45 days, specifically. Insurance Companies take time to deliver quotes. Giving your business a 45 day cushion to work is ideal: it gives you time to consider your business’s structure. 45 days also give the agent you are working with to shop the market and engineer the best possible quotes.
2. Know Your Payroll
· Knowing how much you will be paying your employees in the first year is key to determine the average cost of workers compensation insurance.
3. Know Your Options
· Different insurance companies will structure your workers compensation insurance quotes differently. You can use a “Pay-As-You-Go” system, which requires you to deliver monthly payroll statements to the insurance company. You can also use an estimate system, where you pay according to an estimate for the year. At the end of the policy year, the insurance company will audit the payroll, giving a credit if the estimate was over or requiring a debit if the estimate was under.
4. Have a Safety Plan in Place
· Having some sort of safety plan in place is key to accessing certain insurance carrier markets. After all, these companies are investing in your risk. Whether you engineer software or install satellite dishes, having an adequate safety plan to protect your employees is always part of the business process.
5. Work with a Broker
· While there are several options for companies to obtain insurance, working with a tried-and-tested broker often brings the best results for the company. Brokers often have access to multiple carrier markets that lets carriers compete for your coverage. Brokers can help you at every step of the process, from analyzing your payroll to developing safety plans built around your business.
average cost of workers compensation insurance
For more information on Workers Compensation, click here. Call our office at 800.786.6273 to speak to a workers comp specialist.