For most businesses, carrying workers’ compensation insurance is not optional. If you do not have this type of policy, you could face fines and other penalties. You will also be at risk of financial loss when employees are injured. Unfortunately, buying workers comp insurance isn’t always cheap. If your worker’s comp coverage is breaking the bank, there are steps you can take to reduce the cost.
Why Do You Need Workers’ Compensation Insurance?
Workers’ compensation insurance is mandatory in most states. In the state of Kansas, every employer with more than $20,000 in annual payroll is required to carry this type of coverage with very few exceptions. The purpose of this insurance is to pay for medical care, lost wages, and other expenses when an employee is injured at work. Workers’ comp insurance covers the smallest injuries, such as carpal tunnel syndrome. It will also cover severe injuries and even death. One caution, not being required to carry work comp insurance does not nullify the employer’s responsibility to pay for the costs incurred due to an employee injury. It just means the employer will be paying those costs out-of-pocket instead of having those costs covered by work comp insurance.
How Much Does Workers Comp Insurance Cost?
The cost of workers’ comp insurance won’t be the same for every employer. In most cases, the cost of your worker’s comp insurance will depend on your location, as well as the industry your business operates in. Another factor that plays a vital role in determining the cost of your worker’s comp insurance is your company’s experience modification rating (EMR), or Experience Mod., which is determined by its claims history.
If you are interested in lowering the cost of your worker’s comp insurance, you should focus your efforts on improving your Experience Mod. At Integrity Insurance Agency, we have over 30 years experience in helping our clients reduce their Experience Mod, which in turn, lowers the overall cost of their work comp premium. We can analyze your work comp situation and show you the specific steps you can take to move toward the lowest cost possible for your business.
How to Improve Your Mod
One of the ways to improve your mod is to optimize your claims process. The more efficiently you handle claims, the less money will be wasted each time an employee is injured. To improve your claims process, make an effort to reach out to each injured employee as quickly as possible after the injury is reported. You should also continue to maintain contact with employees as they recover. Also, it is important to make sure that all your claims paperwork is filed quickly and accurately, so there won’t be any unnecessary delays.
Another way to improve your mod is to reduce your company’s total claims, which usually means avoiding injuries. To prevent injuries at work, take the time to invest in safety measures for employees. You can also reduce the risk of accidents by training your employees to be safe on-the-job. To get employees involved in safety training, consider offering rewards to employees to complete your safety training program successfully.
Integrity Insurance Agency is ready to assist you. Check out our Integrity Advantage program at: https://integrityinsuranceagencyinc.com/about/integrity-advantage/ If you don’t already have your own login information to our Integrity Advantage portal, contact us immediately and we’ll activate your portal. Integrity Advantage is absolutely FREE to clients of Integrity Insurance Agency.
Shopping for the Best Workers Comp Coverage
Different workers’ comp insurance providers charge different premiums for the same coverage. To get the best deal on workers’ comp insurance, you need to shop around and compare prices. When shopping for coverage, make sure that insurers are using the correct categories to calculate risks for your business and its employees, as these categories will change the price of coverage considerably.
If you are interested in buying workers’ comp coverage, call us today to discuss your options. We will be happy to help you find the right policy for your needs.