Frequently Asked Questions about Workers' Compensation
1. What is work comp (workers' compensation) insurance and why do I need it?
Workers' compensation insurance is required by law in 49 states. It is a form of insurance coverage specifically designed to provide for medical payments and in some cases, financial payments to employees. Coverage is only extended to employees who suffer injury, occupational diseases, or work related death in the course and scope of employment while doing some activity that furthers the affairs of the employer.
2. How can I reduce my premium?
There are a few simple ways to ensure that you are paying the lowest price for workers compensation insurance:
· Have Workers' Compensation For Less shop your policy with many top rated insurance companies.
· Maintain a safe work environment.
· Verify that your payroll numbers and class codes are correct.
3. Aren’t all insurance companies the same?
No. Although coverage for workers' compensation policies is very similar, the carriers differ greatly. They have varying degrees of financial stability, claims processes, rehabilitation services and premium. No single workers' compensation carrier fits every employer, so shopping for the best combination of price, service and stability is critical.
4. Where can I go to learn more about workers' compensation?
There are state and national authorities that can answer additional questions:
http://www.naic.org/index_consumer.htm
http://www.workerscompensationinsurance.com/
For additional information contact one of our workers' compensation experts today @ 1.877.852.5846
5. I have employees in 3 states, do I need 3 separate policies?
Not generally. Many insurance companies cover workers in multiple states on the same policy. Be sure to speak to one of our experts to find the right solution for your business.
6. How do I get my experience modifier?
Experience rating is a mandatory process that modifies the published rates for rating classifications by taking into account the actual reported losses and payrolls of an individual business. These are calculated by NCCI for businesses with more than five years in business and a workers compensation premium over $5,000 a year. Typically, you will receive an Experience Modification Rating Sheet each year ninety days prior to your policy expiration date. If you are unclear of your company’s current Experience Mod, your insurance carrier can help you locate this. Your previous Experience Mod is also listed on the declarations pages of your current workers’ compensation policy.
7. Will my premium change next year?
Premiums for workers' compensation insurance are based on factors such as the amount of wages paid by the employer, the classification of the company's employees, the insured's experience modifier and your carrier’s rates. Most likely, your rates will change from year to year so it is important to have a workers' compensation expert from our organization work on your behalf.
8. What happens if I have an injured employee?
First, assist your employee in obtaining prompt medical care. Then, file a claim with your workers compensation insurance company. Conduct an investigation to determine the cause of the injury to prevent it from happening again. Finally, stay in contact with your injured employee and the medical provider. Your claims adjuster will walk you through the process to ensure you and your employee are being taken care of in order to get the employee healthy and back to work as soon as possible.
9. How do past claims affect me changing insurance companies?
Past claims impact your experience modifier and thus impact your premium and acquiring coverage. Every employer is subject to claims and having a claim should not frighten you - that is why you have insurance. Typically, insurance carriers look at your experience modifier and compare it to other similar businesses. You may have a claim, but still have fewer claims and a modifier better than peer companies, thus you would be charged a lower rate.
10. Why do the premiums insurance companies charge vary so much?
The big difference we see is because of the business model and actual loss experience of each insurance company. Because of the significant differences we see each year we believe it is important to "shop" your coverage to many carriers each year.
11. How does Workers Compensation For Less, LLC get me the best price?
We make top rated insurance companies compete for your business which leads to lower rates.
12. How many insurance companies sell workers' compensation?
Hundreds of insurance companies are licensed in most states. Some years they will be aggressive in growing their customer base and some years they are not. That is another reason it is important to have experts review your policy and premiums annually.
13. Why can't I just use last year's loss runs since I've had no claims?
The insurance industry requires that current loss runs be provided to change coverage, even if you've had no losses. They should be requested from your insurance company 60 days before your policy expiration date.