State law requires that employers provide Workers Compensation insurance for their employees. Accidents happen. When they do, your Workers Compensation policy may
Pay the medical bills of an injured employee
Compensate for a portion of lost income because of an employee's inability to return to work
Protect your company from lawsuits filed by employees injured on business property
For businesses with mostly office services, the cost of workers compensation is a minor expense, currently costing only 7 cents per hundred dollars of payroll here in MA. But it costs a lot more in the trades, in manufacturing, and any business with a physical labor component. For these businesses, the costs can be a substantial labor expense differentiator so good experience matters.
Workers compensation is highly regulated, so every company operates off the same set of rules and the same set of rates. Low loss businesses may benefit from rate discounts, so paying attention to employee safety obviously helps. Further, businesses are subject to rate modifications based on their own experience.
Business structure affects how owners, officers and partners are treated. To demystify those rules,see this table which organizes how various ownership structures are treated.
For a deeper dive into exactly how workers compensation experience affects your future insurance costs, see our blog on breaking down the experience modification factor calculation.
Gordon Atlantic offers a "Pay-As-You-Go" workers compensation solution which allows payments to be made as payroll expenses are made, rather than the traditional format of making estimates of future payroll and insurance costs.
As with other aspects of your insurance program, frequent or big losses will catch up with you. Work with us to consider risk programs in front of insurance to lower your overall cost of risk.
For a confidential discussion or cost estimate, just tell us who you are to the right.