Looking To Obtain Workers' Comp Insurance? Learn What Factors Can Affect The Price Your Business Is Quoted

After struggling for months to know what to do about our family finances, I realized that there were some pretty big loopholes in our plan. I knew that I needed to insure our family so that I could protect our money in the event of an accident, but it was really difficult to find the perfect plan. I started talking with an insurance broker who could help, and it was amazing to hear the solid advice that he had for us. This blog is all about insuring your family by finding the right insurance policies and keeping your costs as low as possible.

Looking To Obtain Workers' Comp Insurance? Learn What Factors Can Affect The Price Your Business Is Quoted

17 May 2022
 Categories: Insurance, Blog

Two companies can pay two very different amounts for workers' comp insurance. This is because there are many factors that an insurance company looks at when providing a quote for a workers' compensation insurance policy. Learning what factors may affect the price your business is quoted can help you to better understand why your price may be higher or lower than you originally anticipated. Here are a few of the factors that can influence the cost of a workers' compensation insurance policy.

The Number of Employees Your Company Employs

One of the factors that affects your workers' compensation insurance price is the number of employees your company employs. The more employees you have, the more you will pay. In addition to the number of employees you have, your total payroll costs may also affect your policy. If employees miss work due to work injuries, insurance pays them a percentage of their salary. Higher salaries equate to a higher potential payout for the insurance company. 

The Locations Where Your Business Operates From

Another factor that can affect how much you will pay for workers' compensation insurance is what states your business operates in. Different states have different laws pertaining to workers' compensation. Some states have higher temporary disability rates or are more lenient with what is considered a workplace injury. The states your employees work in can directly impact your overall workers' compensation insurance price. 

The Nature of Your Business

The type of business you operate plays a direct role in the price you will pay for workers' comp insurance. Some jobs are more dangerous than others, and thus, employees are more likely to be injured. If your company is involved in a dangerous trade, such as construction, you can expect to pay higher amounts for insurance. 

Your Past History With Workers' Compensation Claims

Lastly, your company's past history with workers' compensation claims plays a role in how much you will pay for insurance. Think about it like auto insurance. If you are in a bunch of accidents, your auto insurance rate will be higher. If your employees have filed numerous claims in the past, you will pay more compared to a company whose employees filed fewer cases. 

These are just a few of the factors that can affect how much your company will pay for workers' compensation insurance. It is also important to understand that the company you pick may also affect the price you pay. As such, it is important to take the time to get quotes from multiple companies. This will help you find the insurance policy that is ideal for your company while also finding a policy that works for your budget. Reach out to insurance companies today to obtain quotes for workers' compensation insurance.