Workers’ Compensation is a form of insurance created to both benefit the employer and the employee. Providing this coverage also results in a mandatory relinquishment of the employee’s right to sue his or her employer for negligence. This essentially means that workers’ compensation is a no-fault system. This type of policy can help cover:
- Missed Wages
- Medical Expenses
- Vocational rehabilitation
- Death benefits
Some form of workers’ compensation is compulsory for most employers in most states however businesses may purchase insurance voluntarily as well. When regulated by the state, the state sets their premium amounts and benefits based on their economy and the risks their businesses face. The state also determines who can sell and handle the workers compensation policies whether it be state-run agencies, private insurance or the state itself.
In Florida, it is required that every person working for another person, group, firm, or corporation to have workers’ comp.This includes people working under any type of contract, even implied contracts. The requirement also includes all lawfully and unlawfully employed immigrants and minors.
As it pertains to your business, workers’ compensation can benefit you by limiting your business’ liability in lawsuits for work-related injuries or illnesses. It can help make sure you are compliant in following your particular state’s laws and it helps injured employees get back to work in their old role or a new one that is better suited for them in their situation.
Statistically speaking, the most common types of workers’ comp claims are sprains and strains which make up about 30% of call claims and are usually the result of lifting something heavy. The second most common type of workers comp claim is falls, slips and trips. These types of accidents make up about 27% of all claims.
Managing cost on an insurance policy is something that all customers, whether it be commercial or personal, are always looking to do. You need to make sure that you are protecting your assets while simultaneously making sure your premium doesn’t become too costly. This type of balance isn’t always easy to do but with a little patience and a knowledgeable agent that you trust, you can be sure you are getting what you need without breaking the bank.
- Shop around – Here at Advantage Plus Insurance we like to take this step out of your hands and handle it for you. As your agent, we proactively shop among the companies in our network at renewal times to make sure you are getting the absolute best rate but this isn’t always the case elsewhere. Be sure you know what you have and are paying for and don’t be afraid to look around to make sure you have a competitive rate.
- Look for package deals – Not every company offers package deals but depending on what you are looking for it can sometimes be done. Businesses usually need to have general liability policies in conjunction with commercial property or commercial auto policies and certain providers incentivize the purchase of multiple policies for discounts, so don’t be afraid to ask the question.
- Raise your deductibles – This is a fairly common way to reduce premiums. If you are okay with potentially paying more for a deductible in the event of a loss, raising your deductibles will ultimately lower how much you pay in premium. Be realistic with yourself though, make sure the amount you select for your deductible is manageable for you in the event something should happen.
- Eliminate Overlapping/Unnecessary Coverages – In most cases, commercial policies don’t duplicate other types of insurance but it can happen. An example of this would be that both a general liability and a commercial auto policy can offer coverage for hired and non-owned autos. Any duplication of coverage across multiple policies means you are paying more than you need to. This kind of checking should be done when you or your agent shop around for you anyway which emphasizes cultivating a relationship with an agent you trust so you don’t have to worry about details like this.
- Pay in Advance – This is simple and applies to most insurance, not just commercial. Most companies will offer a discount, whether it be off the premium itself or by eliminating fees if you pay your premium up front for your term. If you have the money to lay out, this can end up saving you hundreds of dollars in the long run.
- Eliminate Risk – The insurance industry as a whole is really a simple mathematical calculation. The company assesses you and your particular situation, they consider the protection you desire, then they assign a risk level to it and give you a price. Knowing that, if you lower your risk then you will lower your premium. Some ways to lower your risk are to take proactive steps to prevent potential losses. Things like properly training employees, not only in the area of your business but as it relates to human resources and workplace safety are helpful as well. You can also include theft prevention programs and technology for your business. Steps like these will look favorably in the eyes of the insurer and can ultimately help your wallet.
- Ask for discounts – This is more of an obvious one but I will say again, never be afraid to ask the question. As I mentioned in the previous step, you may be eligible for safety discounts or organizational discounts depending on your business. In addition to those there are loyalty discounts, autopay discounts, paperless discounts and potentially more. Have dialogue with your agent and ask what applies to you.