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How should my business go about purchasing a workers� compensation policy?

Home » Small Business » Workers� Compensation » How should my business go about purchasing a workers� compensation policy?

Workers� compensation policies are expensive, and prices can vary widely based on the number of employees you have and on your specific industry. It is worth your time to shop around; ask the same questions of several providers and compare their answers and their prices.

As with all workers� compensation details, check with your state to determine its guidelines. Some states only offer state-run policies while other states offer only private providers. If your state offers only one or the other, you should still talk to the provider to make sure they give you what you need and not more or less. If your state gives you the option of purchasing insurance from either the state or a private company, get information and quotes from both.

Among private providers, you may be able to get a discounted rate if your business is a member of a trade association. Your trade association may have negotiated reduced rates that you don�t know about, and can receive, even if you are not an active member of the association. It is also a good idea to look for discounts based on previous safety on the job or safety practices at the workplace. For example, if your company has had no accidents on the job during the past three years, or if you operate a smoke-free workplace, an insurance provider may offer you a reduced rate. Think of it as a good driver discount for car insurance.

Because workers� compensation laws are set by the state, you may have less freedom than you would on other types of insurance policies, but it is still a good idea to talk with several companies. Look for a good deal, and make sure that your coverage both complies with the law and provides for your family of employees.

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