Texas Workers Compensation Insurance

Tips On Getting The Best Workers’ Compensation Insurance Rate

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Bundle workers’ comp insurance, general liability, and commercial auto insurance in a single bill. The Pay-as-You- Go is an increasing popularity in the business world eliminating up-front costs and outdated payment methods.

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Maintain a work safety program. Implementing an on and off premises workplace safety program. Well-trained employees following all recommended safety standards can help you reduce worker injuries and maintaining a clean claims history.

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Proper employee classification. Ensure your workers’ comp policy has proper and accurate employees classifications. Inaccurate classification error can lead to unnecessarily higher costs in premium. Make sure every employees or workers fall into the correct classification ratings and rates.

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Develop a return-to-work program. Creating a return-to-work program can help you retain valuable employees. It is to help injured workers return to work as soon as they are medically able. Doing this could provide an alternative role for them to return to work more quickly. Many insurance carriers offer premium credits or discounts to business owners who offer return-to-work programs. A return-to-work program can save you the cost of hiring new employees – even if you don’t earn a discount.

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Compare workers’ comp insurance quotes from multiple companies. We represent over 40 insurance carriers and can quickly compare coverages and costs. Because quotes can vary so much by company, there can be substantial potential savings by comparison shopping.

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Do everything electronically. Many insurers offer small discounts for paying by EFT (electronic funds transfer) and receiving bills and policies electronically.

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What Determines The Cost of Workers’ Comp Insurance Coverage?

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Small Businesses

Nearly every state requires employers to offer workers’ comp insurance to employees. The average cost of workers’ compensation insurance is $936 per employee, per year or $78 per month Nationwide. Workers’ comp insurance premiums are calculated based on the gross annual payroll you pay to employees. The more payroll expenses you have, the higher your workers’ comp insurance premiums. Workers’ comp insurance premiums are also influenced by your claims history, the requirements of your employees’ roles, the type of business you’re in, and state laws.

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Independent Contractors

In most states, it is required for businesses to provide workers’ comp insurance coverage for independent contractors and subcontractors who don’t have their own coverage. Avoid covering contractors by collecting their Certificate of Insurance before doing business with them. If they don’t have workers’ comp insurance, you’ll be charged for their coverage at a similar rate of their total pay based on the type of work they do.

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Basic Workers’ Compensation Insurance Premium Calculation

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Business’ industry, claims history, and total payroll is considered when calculating the premium cost of worker’s comp insurance. The class code represent your business industry that’s assigned a rate based on the type of work performed by your employees. Then that number is multiple by your payroll divided by $100 and an ERM (experienced modification rate) which represents history of your claims. Your workers’ compensation premium result is typically written as a dollar amount per $100 of your company’s payroll.