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Step 1
Consult the government website for your state to learn the specific requirements for workers' compensation insurance in your locality.
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Step 2
Understand that in most states, employers obtain workers' compensation insurance from private providers just like they purchase other forms of employee insurance.
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Step 3
Work with a consultant to find the best workers' compensation package for your company.
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Step 4
Put your workers' compensation coverage out to bids amongst several private insurers.
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Step 5
Prepare a package of information for potential providers to use when preparing a quote for your workers' compensation coverage. You will need to document the accident history of your company.
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Step 6
Audit your facility for possible workplace hazards. Many workers' compensation providers will want to inspect your premises before placing a bid on your coverage.
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Step 7
Acknowledge the enormous risks for attempting to operate without workers' compensation insurance. In most states, employers who choose not to obtain workers' compensation insurance are subject to severe financial penalties from the state. They are also subject to lawsuits by injured workers.
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Step 8
Investigate the possibility of self insurance for workplace injuries to employees.
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Step 9
Be wary of consultants or brokers who advise you to switch workers' compensation providers more than once. In general, consultants and brokers earn their fees by placing policies which means the more often you change providers, the more money the consultants and brokers make.
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Step 10
Note that if you are unable to find or afford workers' compensation insurance through a private provider you will be placed in an assigned risk pool run by your state.
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Step 11
Reduce your premiums by purchasing a higher deductible policy.
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Step 12
Review the calculations of your insurance provider. Premiums are based on the risks assigned to the jobs in your company and the wages that will have to be supplemented while an employee is injured.
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Step 13
Ask if your state requires that overtime wages be figured into salary calculations. Eliminate overtime wages from wage numbers if not required to include them by your state.
