If your business has employees, you probably need workers compensation insurance, too. Most states make it mandatory for businesses that work with employees to have such insurance – here is how to shop efficiently for the right policy, one that fits your budget and provides you the right type of coverage. Here are some tips to make the process of finding and buying the right policy easier for you.
Research State-Level Requirements
While workers comp insurances are mandatory in most states, the conditions that the policies need to fulfill might vary from state to state, so the first thing that you should do before even starting to shop for a policy is to review and understand your state’s requirements. Your state-level regulations will determine the categories of employees that must be included into the policy and will also have stipulations regarding the insurance companies that you can buy your policy from. You should also be aware that standard policies usually provide coverage within the boundaries of the state where the policy was bought, so if your business operates at multi-state level, your policy needs to provide multi-state coverage as well.
Decide Whether Turning to an Agency or Directly to an Insurance Company Works Best for You
Insurance policies, including workers comp policies, can be purchased either directly from insurance companies or through workers comp insurance Colorado agencies or brokers. While in the first case, the task and burden of evaluating insurers and their products rests on your shoulders entirely, turning to an independent, local agency or broker who works with multiple insurance companies makes the process much easier – your agent or broker will probably recommend you several solutions and will explain to you the pros and cons of each policy, so with a broker, you will only need to tell your insurance specialist about your insurance needs and then pick the policy that works best for you.
Understand How Discounts Work and Find Out Whether Your Business is Eligible
While the formulas used at state level for the calculation of the costs of workers comp insurance is not under the influence of the businesses that need insurance, there are many things that you can do to reduce your insurance costs. You can reduce the risks involved by your business activities through workplace safety programs or through enrolling new employees into special safety trainings, so find out about the conditions for lower premiums as well as about the your options to improve your workplace safety levels.
Other great ways to benefit from discounted premiums are make more substantial payments or to buy multiple policies from the same insurer. Most insurance companies offer various payment plans, such as monthly, semi-annual or yearly payments – yearly payments are usually the most favorable plans, allowing you to pay lower premiums and lower billing fees as well. Choosing the same insurance provider for most or for all your insurance policies is also a great way to become eligible for better rates, an option worth considering because it makes the management of your policies much easier.