How to Know If You’re Paying Too Much for Workers Compensation Insurance

How to Know If You’re Paying Too Much for Workers Compensation Insurance

An integral part of any small business’s insurance portfolio is workers’ compensation insurance. Everyone wants to be covered in the event of an accident, but nobody wants to be overcharged. Consider these elements when purchasing this insurance.

Proportional Costs

The cost for workers’ compensation insurance is usually quantified as a proportion of total payroll expenses. While this range varies based on the size and location of a business, it needn’t be a mystery. Most insurance providers’ sales agents will be happy to walk you through their pricing structures.

Business Size

Another important item to remember while shopping for insurance is the size of your business. You want to have enough coverage, but not more than you need. For most small businesses, a few thousand dollars is plenty. However, as your business grows, remember that your premiums will likely grow along with it.

Changing Factors

If you have been with a provider or at one level of coverage for a while, it’s a good idea to revisit the terms and check if they’re still working for your business. Whether that leads to seeking new coverage or confirming that your needs are still being met, it serves to keep an eye on costs.

By using these tips to help manage the cost of your workers’ compensation insurance, you can rest assured that your business and your wallet are both covered.