Workers compensation insurance protects your employees and your business from work-related accidents, illnesses, and even death. Nearly every state requires that employers have insurance to cover medical costs and lost wages for workers who are injured or become ill on the job.
Most states require any employer with at least one employee to have coverage, but some states set a minimum of two to five employees. A few states have different requirements for agricultural or construction businesses, and some allow charities to opt out of the workers’ comp system.
Therefore, how is workers’ comp calculated? To figure out workers’ comp premiums, you’ll first need to understand the factors that influence them, such as:
Workers’ class codes
Number of employees
A formula you can use to help estimate your business’ Workers’ comp costs is:
Workers’ Classification Code Rate X Experience Modification Number X (Payroll / $100) = Premium**
Workers' Compensation Insurance premiums are based on your company's business and industry, the type of work performed by each employee, claims history and your company payroll. The formula looks something like this: Employee Classification Rate X Employer Payroll (Per $100) X Experience Mod Rate (Mod) = Your Workers’ Comp Premium.
There is always a great chance of saving money on your WC once we analyze it for your firm.
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There is always a great chance of saving money
When preparing a commercial vehicle insurance quote for your business, there are many details an insurance broker needs to know. Whether you're quoting for a commercial truck fleet, company car or truck or any other type of commercial vehicle. Use our agency as your trusted advisor to be sure you're prepared and covered professionally. Please let's start the conversation.