| If the law says you need workers' comp | | | | cost. |
| insurance--and in most states, it does if you have | | | | - Ask about merit rating credits. In many states, |
| three or more employees--you may think you're | | | | smaller businesses that typically pay $5,000 in |
| stuck with the premium you're quoted. Not so. | | | | premiums or less may be entitled to a credit of 5 |
| Some creativity and attention to detail can mean | | | | to 15 percent if they have not had any lost-time |
| plenty of savings. These tips can help you save | | | | claims during a period designated by the carrier. |
| on workers' comp premiums while still providing | | | | Talk to your agent or insurer about what's |
| your company and your employees the coverage | | | | available and how you qualify. |
| you need: | | | | - Start safety and drug-free workplace programs. |
| - Classify employees correctly. Your workers' | | | | These programs may qualify for premium credits. |
| comp policy shows classifications, job descriptions | | | | Most workers' comp insurance companies assist |
| and estimated payroll. Review it for accuracy, and | | | | their policy holders in establishing and maintaining |
| contact your agent or carrier with questions or to | | | | such programs. Also, keep in mind that in addition |
| make clarifications or changes. | | | | to saving you on workers' comp premiums, these |
| - Consider a deductible. Typically, workers' comp | | | | programs can be beneficial in a variety of ways, |
| covers from first dollar, but most states allow | | | | such as creating a more attractive environment |
| deductibles, which earn you premium credits. | | | | to top workers and as a marketing tool with |
| Consider your claims history and the amount of | | | | safety-conscious customers. |
| the credit when making your decision. | | | | - Keep accurate payroll records. Insurance carriers |
| - Drop your own coverage. Many states let | | | | deduct "excludable compensation" (such as the |
| owners or corporate officers take themselves | | | | difference between base and overtime pay, tips |
| out of the workers' comp policy. That could lower | | | | and some other forms of compensation) from |
| costs, but would also mean you wouldn't be | | | | your payroll to determine your premium, so keep |
| covered for an on-the-job injury. Make this | | | | detailed records. You need to report more than |
| decision based on the type of business you're in | | | | just the total wages you paid. |
| and the work you do. If you work primarily in an | | | | - Shop around. There was a time when all carriers |
| office or low-risk situation, this could be a good | | | | charged the same rates, but those days are |
| idea. But if you spend most of your day on | | | | gone. Shop around for the best rates and support |
| construction sites or other potentially hazardous | | | | services. |
| locations, your own coverage could be worth the | | | | |