When you buy workers compensation insurance for your business it is important to realize that your employees will not be contributing, or helping you to pay the premiums. This is an insurance expense that you as the employer are required by law to carry. It should simply be viewed as a cost of doing business if you have employees.
As a business owner, the fact that the expense for this insurance is all yours also means if you want to get a good deal on this essential insurance coverage all the research will have to be done by you as well. Depending on where you are doing business, the workers comp rates may or may not be predetermined. Even in the areas where they are predetermined the exact calculating premiums will most likely not be a totally cut-and-dry process. As you shop around you may find that quotes may differ significantly depending on the insurance broker’s approach. That’s why it’s always a good idea to get quotes from a few different brokers, regardless of your province or state.
You should also be aware that once you’ve bought workers compensation insurance coverage, it is not unheard of to be mistakenly overcharged. For this reason you should make it a point to do routine checks to ensure that your employees are classified correctly, and that your business is being charged the correct amount for each employee. If rates ever go up unexpectedly, the responsibility falls on you to look into the situation and get an explanation as to why soon as possible.
In conclusion, if you want to reduce premiums, it is a good idea to make it your standard practice to provide a safe and healthy environment for your employees. That is the best way to keep your record clean, and prevent claims against your policy.
