Not as much fun as going to the mall but just as many options. When it comes to “shopping” your workers’ compensation insurance options, you want to know what you need and what will work best for your business. This can be one of the hidden costs of a new hire that you may not think about. But you must not only think about it but be proactive in shopping for the best workers’ compensation policy for your business. There are many options and you should check into as many as possible before deciding which is the right fit for your business.
Keep these things in mind when looking into your workers’ compensation options:
1. You Actually Have Options
You wouldn’t grab the first thing off the shelf when you walk into a store without looking around. Don’t go for the first policy you find.
2. Multiple Workers in Multiple States Mean Multiple Policies
You need a policy for each state you have employees in unless your policy specifically covers multiple states.
3. There Are Different Providers That Can Quote Policies
Insurance agents and brokers can write workers’ compensation policies through different carriers. These carriers cover different industries, have different requirements and different pricing. The industry you are in and the jobs your employees are doing will narrow down which carriers are options for you and what your pricing will look like. Some industries can only get coverage through State Fund because of the high risk associated with what they do.
4. Know What Kind of Business You Are
Are you a sole proprietorship, partnership, corporation or LLC? If you are a sole proprietor, you are not considered an employee of your company. However, if you are a partner, corporate or LLC business you are considered an employee and must also be covered by the insurance.
5. Do Your Homework
Get quotes from a few different insurance companies. You’ll need to gather some information first.
- Number of Employees
- Total Payroll for all employees (including yourself if you’re not a sole proprietor)
- Federal ID Number
- Copy of past claims or coverage
Once you’ve gathered all your information and finished your research, you will be well on your way to finding the right comp policy for your company. Even though it might feel a bit overwhelming, remind yourself that if you’re shopping for a comp policy, it probably means your business is growing!
For more information on how to on board new employees and make sure you are doing everything you need to do to be compliant, check out our Free Employer’s Guide To Hiring Your First Employee.