First Insurance Group
Home Page

Free Insurance Quotes Auto Insurance Home Insurance Commercial Insurance Life Insurance Health Insurance

Workers CompensationIf you offer new products or services, it's possible that your workers compensation insurance rates may change. That's because the type of work that your employees perform is the primary driver in workers compensation insurance rates.

How Workers Compensation Rates Work

Like any other insurance coverage, workers compensation premiums are based on the risk that you'll file a claim. In this case, it's the risk that your employees will be injured on the job. Each state has a rating system that takes into account both the type of work your company does and specific job functions.

For example, a company that uses heavy machinery will typically pay higher rates than a company that only does phone sales. The premium for a machinery operator will often be higher than the premium for an accountant in the same company.

In addition, companies with a history of filing claims may also see higher future premiums.

What Happens When Your Products Or Services Change?

When your products or services change, that means you might be classified into a new industry or have new job titles. If the work is riskier than work you had been doing in the past, you might see a rate increase. Similarly, if the work has less risk, your rates could go down. If the changes to your business result in more worker injuries or fewer injuries and change the number of claims you file, your rates could also go up or down.

Review Your Worker Classifications

You should always periodically review your worker classifications, but it's even more important when you're changing your company's offerings or restructuring your employees. If you're using the wrong classification, you could be paying too much for workers compensation insurance. Or, you could be at risk of getting in trouble for not having adequate coverage or for having a claim denied. Even though states often periodically audit workers compensation premiums, do this on your own to avoid any potential problems.
Posted 12:32 PM

Share |


No Comments


Post a Comment
Name
Required
E-Mail
Required (Not Displayed)
Comment
Required


All comments are moderated and stripped of HTML.
Submission Validation
Required
CAPTCHA
Change the CAPTCHA codeSpeak the CAPTCHA code
 
Enter the Validation Code from above.
NOTICE: This blog and website are made available by the publisher for educational and informational purposes only. It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional in your state. By using this blog site you understand that there is no broker client relationship between you and the blog and website publisher.
Blog Archive
  • 2019
  • 2018
  • 2017
  • 2016
  • 2015
  • 2014


View Mobile Version
First Insurance Group
Home | Get a Quote | About | Customer Service | Claim | Contact



First Insurance Group
Main Office 2520 South Highway 27 | Somerset, KY 42501 | Phone: (606) 679-3570
Bardstown 107 Lincoln Way | Bardstown, KY 40004 | Phone: (502) 348-5921
Frankfort 1510 Louisville Rd | Frankfort, KY 40601| Phone: (502) 223-5100
Nicholasville 508 North Main St, Suite C | Nicholasville, KY 40356 | Phone: (859) 885-9454
Richmond 312 Jason Dr Suite 3 | Richmond, KY 40475 | Phone: (859) 623-6692
Glasgow 605A Happy Valley Road | Glasgow, KY 42141 | Phone: (270) 651-5723
Danville 811 S Fourth Street | Danville, KY 40422 | Phone: (859) 236-5192

© Copyright 2017. All rights reserved. Powered by Insurance Website Builder
Get A Quote Find an Agent Locations
Facebook Twitter LinkedIn google maps for somerset