Why quote with us ?
We specialize in workers compensation coverage. We have been helping businesses with their insurance needs since 2001. We have access to multiple A rated carriers and "PEO" providers. We make quoting process fast, easy and efficient for you. As an independent broker, we represent you and we are not a captive agency. We provide guidance with your policy inspections, annual audits, audit disputes, claims, payroll reports. We also provide payroll services, bookkeeping & tax preparation services, human resources as a complete package to meet your outsourcing needs.
If you are new in business with no prior coverage, have a lapse or gap in coverage, denied coverage due to too many past claims, one or more large claims or having subcontractors, in a hard to place class code, we are here to service you.
Pure & Advisory Premium Rates
Workers' compensation insurance, often called "workers comp," is a state-mandated program consisting of payments required by law to be made to an employee who is injured or disabled in connection with work.
In most situations, injured employees receive compensation, no matter who was at fault for the injury. Because these workers comp benefits act as a type of insurance, they preclude the employee from suing his or her employer for the injuries covered.
Workers' compensation insurance covers:
- medical care from the injury or illness
- replacement income
- costs for retraining
- compensation for any permanent injuries
- benefits to survivors of workers who are killed on the job
The workers' compensation system is based on a trade-off between employers and employees. Employees are entitled to receive prompt, effective medical treatment for on-the-job injuries or illnesses no matter who is at fault and, in return, are prevented from suing employers over those injuries.
As a result, employers are required by law to have workers' compensation insurance, even if they have only one employee. And, if your employees get hurt or sick because of work, you are required to pay for workers' compensation benefits.
A Pay As You Go program can be set up in conjunction with the payroll program of the employer. In the Pay As You Go program, the employer or payroll provider reports bi weekly or monthly the pay for each employee combined with the classification code for the employee. The premium is then calculated for the employer using actual payroll amounts. This eliminates the large lump sum payments, making the workers’ compensation insurance premium an expense the employer can budget. It also greatly reduces the carrier’s need for a premium audit at the end of the policy year.
Workers' comp insurance premiums are calculated according to how employees are classified (with regards to the specific type of work they perform) and the rate assigned to each employee classification. The premium rate itself is expressed as dollars and cents per $100 dollars of payroll for each class code. In most states, the National Council on Compensation Insurance (NCCI) and in California, WCIRB determines the classification rate and experience modification factor (MOD).
Three Factors Go into Setting Workers' Comp Premiums:
- Size of the employer's payroll
- Employee job classifications
- Company's claims experience
Premiums for workers' compensation insurance are calculated by the formula below:
Payroll (per $100) X Classification Rate X Experience Modifier = Premium
The basis for an employer's workers' comp insurance premium is your payroll. For each $100 dollars of your payroll, there is a specific rate, which is determined by the classification codes of your employees. For better cash flow management, you can spread your premium payment out over the year instead of paying one lump sum.
Businesses are separated into groups according to the type of work they do. The classification system identifies which type of work presents more risk to the employees performing these tasks. For each classification of employee, the business owner must pay a certain amount for workers' comp insurance based on every $100 dollars of payroll.
Your experience modifier - typically referred to as your MOD - is a numeric representation of your company's claim experience. MODs are based on how your business compares to others in your industry with similarly classified employees. An average MOD is set at 1.00. Employers with fewer and less severe accidents than average have a MOD of less than 1.00.
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