How to Shop for Workers' Compensation Insurance

A workers' compensation insurance policy is a key component of your company’s risk management system. An effective insurance provider can help minimize costs and liabilities, so shop around and take your time to carefully evaluate and select the right partner for your business.

Difficulty: Moderately Challenging

Instructions

Things You'll Need:

• Your state’s regulations
• Description of your business
• Number of employees
• Annual payroll

1. Learn your state’s workers' compensation insurance regulations. Each state has different requirements and restrictions. Many states give employers the choice to purchase insurance from a carrier or be self-insured. Some states also sell workers' compensation insurance through a state fund. There are a few states, called monopolistic states, that require all employers to purchase insurance from the state itself.

2. Obtain a quote from your state if it offers a state workers' compensation fund. If you are in a monopolistic state, contact your state to inquire how to purchase insurance and then skip the remainder of the steps.

3. Contact several insurance carriers to obtain comparison quotes. Use online tools to see quotes compared side by side.

4. Evaluate the various workers' compensation insurance carriers. Consider the following factors in making your decision: costs, claims process, adjuster experience and value added services such as risk management assistance.

Tips & Warnings

• To see if your state has a state workers' compensation fund that sells insurance, check your local phone book search on the Internet.
• Ask the insurance carriers if you can speak with some current customers to get their feedback on the quality of service.

[GNGAmerica]

on 6/5/2008 In California, it is absolutely critical that you keep accurate payroll and expense records. All policies are subject to payroll audits at the end of the policy year. If your payroll estimates way off, you may end up with a huge bill at an inconvenient time. If you canlt do the books, hire professional help. They will save you money!