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
Click here to submit an inquiry to Murphy Insurance or call us at 800 222 8711
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.

Read Other Blog Posts

Drowsy

Preventing Drowsy Driving

Every year, the National Sleep Foundation organizes Drowsy Driving Prevention Week to raise awareness about the dangers of driving while fatigued.
Read more
Flooding

Why Flood Insurance is Essential: Lessons from Hurricanes Helene and Milton

The devastating impacts of Hurricanes Helene and Milton have shown that flood risk isn’t limited to coastal areas. These storms have highlighted a crucial gap that individuals and businesses need to be aware of: flood damage is generally not included in typical home, condo, renters, or commercial property insurance, making a separate flood insurance policy essential for true protection.
Read more
Deer

Defensive Driving to Avoid Deer Collisions

With deer mating season in full swing from October through December, drivers face an increased risk of collisions. As deer are more active, especially around dawn and dusk, habitat loss has pushed them closer to roadways. Here’s how defensive driving can help you avoid an accident.
Read more
Massahusetts DIA Seal

MA Dept of Industrial Accidents New Notice Requirements

The Department of Industrial Accidents (DIA) has revised the Notice to Employees and has established new notice requirements. On or before September 16, 2024, all employers must utilize and repost the revised Notice to Employees poster.
Read more
Spam Phishing Scam

Recognize Spam and Phishing Emails

As more of our daily lives move into cyberspace, hackers, cybercriminals and spam bots may lurk behind every new message that shows up in your inbox. Even robust spam filters may not be able to catch every unwelcome email. Fortunately, you can act as an additional line of defense for yourself and your electronic devices by understanding the warning signs of spam and phishing emails.
Read more
Distracted Driving

How Distracted Driving and Texting Impact Your Auto Insurance Premiums

One major reason for auto insurance premiums going up is the rise in distracted driving, especially texting while driving. Distracted driving has become a leading cause of accidents, pushing up costs for insurance companies and, ultimately, leading to higher premiums for all drivers.
Read more
Hacker

Cyber Risk Exposure Scorecard: Assess your risk

Cyber incidents have become increasingly prevalent, impacting organizations of all sizes and industries. As these incidents continue to rise in both cost and frequency, organizations must take steps to address their cyber exposures and bolster their digital security defenses.
Read more
Shipping dock

Exposing Double Brokering: Safeguarding Your Freight Against Deceptive Schemes

In the landscape of global commerce, the logistics industry serves as the backbone ensuring that goods reach their destinations efficiently. Yet, amidst the complexities of this intricate network lies a threat known as double brokering, a freight fraud scheme that can leave companies vulnerable to financial loss and operational disruption.
Read more
Fireman

The Crucial Role of Disaster Recovery Plans and Insurance Solutions in Protecting Your Business

When preparing for disasters, the significance of comprehensive disaster recovery plans and understanding insurance solutions cannot be overstated. These two pillars serve as crucial safeguards, offering businesses resilience against unforeseen challenges and ensuring continuity in the face of adversity.
Read more

Visit Our Business Insurance Page

Business Insurance

Murphy Insurance stands as your steadfast partner in safeguarding your business from unforeseen challenges in today’s dynamic business landscape. In an era where comprehensive business insurance is not just a prudent choice but a vital one for ensuring the long-term stability and security of your enterprise, we are here to offer our expertise. Running a business inherently entails various risks that can potentially impact your financial stability and reputation. Learn more about our comprehensive business insurance solutions, which are meticulously designed to protect you from these potential threats, granting you peace of mind necessary to focus on the growth and prosperity of your business.