1. Check Your Classification
Make sure that all of your employees are correctly classified. Even one of two miscalculations can lead to big costs. This is one of the most common reasons for overpaying, so check to be sure you haven’t mislabeled some employees making their rate higher.
2. Are You in The Pool?
Check to see if your company’s workers compensation is provided through your state’s assigned-risk pool. If it is, you might want to talk with your insurance agent about ways to reduce your risks and get out. Ask question like: Why was my company put here in the first place? and How could my company reduce our risks and number of claims?
3. Perform a Payroll Audit
Workers’ compensation premiums are usually based on payroll figures, excluding overtime. Conducting a payroll audit and figuring the amount of overtime will help you to know how much your employees are working and the better assess the risks involved.
4. Can You Use a Deductible?
Deductibles can greatly reduce your workers compensation rates. Did you know that thirty-one states permit employers to reduce their workers’ comp premiums by paying a deductible? A typical deductible is between $100 and $5,000.
5. Double Check Your Experience Rating
This compares your company’s claims history to that of other firms in your industry. Higher premiums occur when you have a higher number of claims than other like industries. Use worksheets available from the National Council on Compensation Insurance (NCCI) to analyze your rating.
At Newman Crane & Associates Insurance, we know that workers’ compensation insurance can be a complex topic. Call today to discuss the options with our agents. 407.859.3691