Commercial Insurance

Workers Compensation

We specialize in helping our clients to understand the complexities of workers’ compensation insurance. The purpose of workers’ compensation insurance is to provide employees with proper compensation for job-related injuries or illnesses. Although specific laws vary by state, workers’ compensation insurance is generally required of companies with W-2 employees.

Many states use the standards of the National Council of Compensation Insurance to determine the rates of their workers’ compensation insurance. The NCCI, a non-governmental private organization, uses classifications to determine the risk factors involved in particular jobs, and the risk factor is obviously greater foroccupations such as mining and construction and generally lower for clerical workers.

Premiums are usually derived from a formula that takes into account a number of factors including salary, benefits and other variables. A remuneration number is then determined which is used in conjunction with the job’s risk factor classification to arrive at the cost of the insurance. Premiums can also be adjusted by “experience modification factors,” which are standards set by the NCCI and other organizations for reducing premiums based on a company’s reputation.

The initial premiums are based on a number of prognostications including the amount of wages to be paid to workers. At the end of the policy period an audit is performed to determine the actual premium amount. The results of the audit can result in either a refund or additional premiums due.

Workers’ compensation coverage is important to the financial well-being of your employees. We work with our clients to find the right coverage with quality insurance companies. Need a better understanding of workers’ compensation insurance? Click below for an easy-to-follow guide.


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