Workers Compensation can frustrating, irritating, and downright painful to the bottom line of a business. Most businesses with an employee are required by the State of Indiana to have a workers compensation policy so this subject can make businessowners feel backed into a corner.
The reality is that Worker Compensation is meant to protect the employee and its laws tend to be employee friendly so an active discussion about this subject can help a business’ future stability and profitability.
It is important to have an independent agent that creates value through relationship and high quality options. Most everyone starts at the bottom line premium, but let’s touch the surface on how we get there.
Here are the rating basics in a simple 3. 2. 1.
1. Carrier Rates – Carriers often have different filed industry specific class rates through the Indiana Department of Insurance. Payrolls are applied to these rates.
Recently, we worked with a prospective painting contractor with 25 employees that was with a carrier that had a filed rate 20% higher than one of our carriers. If they are bidding jobs with a higher cost/lower profit margin how do you think that would impact their business over the long term?
2. Schedule Modification Factor – Carriers in the State of Indiana can give a credit or debit modification of up to 50%.
How confident are you that your agent is advocating for you?
3. Experience Modification Factor – Many small/mid-sized businesses have a state calculated modification that is based on their company’s experience.
Do you know there are types of claims that affect it more than others? And that these types of claims can be preventable? A poor claims experience can haunt workers compensation premiums for years.
Have questions? Want an independent review of your workers compensation policy and services? Here’s your invitation.
Jeremy Hyde | Colligan & Company