How to Be a Savvier Workers Compensation Insurance Shopper

When you’re a small business owner, there’s little margin for error. That holds for your insurance coverage, too. Your ideal policy will meet your every need and align with your budget. Easier said than done, right?

But, with insurance, there’s no one-size-fits-all package. So if you have a better grasp on what impacts your What affects a workers’ compensation policy rate in Californiapremium, you’ll be better prepared to tailor it to your company, in terms of both protection and cost.

Let’s use workers’ compensation insurance as an example, because it’s a fundamental component of every business’s coverage.

Two factors, primarily, affect your workers’ comp rates. The first is the nature of the work that you and your staff do. Roofing is inherently more dangerous than software development. In fact, it’s one of the most dangerous occupations in the country. So, a roofing company is going to pay more to cover its employees than the software developer is.

The size of your outfit also has a strong bearing on your workers’ compensation rates. Your premium will be based directly on your payroll. The higher the amount, the larger the premium.

Considering the nature of both factors, there shouldn’t a wide range in your workers’ compensation insurance quotes. But that doesn’t mean there isn’t room to save. For starters, work closely with your agent to set the correct classification codes. Then, make a point to review your coverage with him/her at least annually to ensure that it’s continuing to meet your evolving needs. During the months between, strive to encourage a safe working environment, and that includes avoiding uninsured subcontractors. After all, your claims history will influence your premium.