Saturday, March 10, 2012

Purchasing Workers? Compensation Insurance: A High Cost ...

or employer, you have a legal responsibility to the people who work for you. If an employee is injured at work, there could be considerable costs. Workplace law and employer responsibilities vary from state to state and country to country, but an all states (except Texas) employers are required to purchase workers? compensation insurance for employees. Even in Texas it is advantageous to purchase the coverage because in most cases if an employee receives workers? compensation, they cannot sue the employer. It is said that workers? compensation is a ?bar? to civil lawsuits against the employer.??

is also called employers? liability. It used to be called ?workman?s ? compensation and although the name has changed, many people still refer to it as workman?s or workmen?s compensation.?

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insurance is usually purchased by the employer from an insurance company although in a few states an employer must purchase it from the state. These states are called ?monopolistic states.?

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workers? compensation insurance coverage, it?s important to find the best arrangement possible. In addition to the cost of premiums, there are considerations such as how much collateral the insurance company requires and the payment schedule.

compensation insurance is determined by each state. Although base rates vary slightly from state to state, the basic process each state uses to calculate base rates is similar. The premium depends on the number of employees and cost of payroll. Each occupation is assigned a risk classification and each company is a little different. Risk is determined by the historical experience of two factors: the frequency of on-the-job injury and the severity of injury of the industry.

workers? compensation insurance for your business, it is important to remember your employees won?t be contributing to the premiums as they do with social security and unemployment benefits. This is one expense that employers are required by law to pay.

usually purchase insurance through an insurance broker who finds coverage and a variety of payment plans depending on many factors including the size of the deductible and whether payment is made in one sum or monthly. Sometimes large companies self-insure or use alternative types of insurance such as captive insurance programs.

, for example, roofers have the highest occupational risk classification, and office clerks have the lowest. Obviously, the hazards of being a roofer are much different and quite a bit higher than those of an office clerk. Therefore, workers? compensation rates are much higher for roofing companies than for administrative companies.

?a base rate for workers? compensation insurance, each classification is translated into a dollar amount, which is then multiplied by 1% per 0 of the total payroll for the employee. For example, the office clerk classification in California is roughly .25 per 0. Therefore, if that employee is paid 0 per week, the workers? compensation insurance premium for the employee costs roughly .25 per week.

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?insurance carriers can reduce or increase rates based on a number of factors. The most important factor is the employer?s safety history. Another important factor is whether the employer offers health insurance to their employees.

cost workers? compensation insurance coverage, you will have to know the number of employees, the amount of your payroll and your revenue. Depending on your jurisdiction, workers? comp rates may or may not be predetermined. Even in regions where they are predetermined, quotes may differ depending on a broker?s or agent?s approach.

once you buy workers? comp coverage, you can be mistakenly overcharged. That is why you should make annual checks, called , to ensure your employees are classified correctly, and? your business is being charged the correct amount for each employee. If rates ever go up unexpectedly, it is up to you to look into the situation and get an explanation as soon as possible. And, in some cases, the insurance company has the right to review your payroll, and if it?s substantially higher than they were told, they can charge you a higher premium in arrears.

is available through local agents, regional insurance brokers, or online. Buying coverage online makes sense for the small to medium size employer. There are certain employers who will only be able to get coverage from the risk pools in their states, but that can be coordinated through our affiliate. By purchasing insurance through our insurance center, you can find competitive rates and special policyholder services.

?to keep premiums down, it?s a good idea to provide a safe and healthy environment for your employees. It?s also important to have a post-injury process so when there is an accident, the procedures are clear from the time the injury occurs until the time the employee returns to work on either . (workersxzcompxzkit)? A light duty program minimizes the impact of the indemnity portion of the claim. That is the best and only way to keep your record clean, and prevent claims against your policy.

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Visit:? http://www.workerscompkit.com/gallagher/QuoteCenter/workers-compensation-insurance.php for more help and information.

Source: http://www.med08.org/purchasing-workers-compensation-insurance-a-high-cost-expense-for-businesses.htm

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