Managing Workers’ Comp Costs

October 6, 2012||inBusiness Insurance|business insurance, workers comp, workers compensation insurance

In managing a business, controlling Workers’ Compensation Insurance costs is crucial to maintaining financial stability and protecting against unforeseen expenses. In this blog post, we’ll delve into practical strategies to navigate the intricacies of workers’ comp insurance, all while keeping your team’s safety a top priority.

Managing Workers’ Comp Costs
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Whether obtaining subcontractor certificates or meticulously tracking overtime, each tip shared here is designed to simplify processes and cut down on unnecessary spending. By staying ahead of the curve and taking proactive steps, you can steer your business confidently through the complexities of workers’ compensation insurance, safeguarding both your financial health and the well-being of your employees.

Ways to Manage Workers’ Comp Insurance Costs

Get Certificates of Insurance from subcontractors. 

If you hire subcontractors, obtain a certificate of insurance from each in advance and review it to avoid unexpected charges. Pay special attention to certificates from sole proprietors and partnership subcontractors. If a sole proprietor or partner is excluded from the certificate and they have no other employees, you are responsible for their workers’ comp costs.

Be sure the proper workers’ compensation classification codes are being used. 

If your business operation changes and workers’ job duties change, be sure to tell us. This could change the classification code applied for certain jobs.

Track overtime separately from regular pay. 

If you blend the two, it will increase the audited payroll estimates and increase premiums. Fixing such mistakes requires extra work.

Apply allowed salary caps when reporting payroll.

Stay under caps of $52,000 for each corporate officer or $38,000 for each partner or sole proprietor.

Get Answers to Questions and Compare Options

Refrain from letting unanswered questions create situations that can be avoided with advanced planning. We’ve seen situations where an audit resulted in an unanticipated bill for over $50,000 because the business did not obtain or properly review subcontractor certificates. Our trusted professionals can help you avoid such situations. We also have access to various competitively priced workers’ compensation programs to help manage your costs. Please Contact Us to learn more about Workers’ Comp Insurance.

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