How to Save Money on Workmen's Compensation Insurance

Workmen's compensation insurance is paid entirely by the employer. In large companies, this can add up to a huge payout every year, even if no claims are ever filed. If you are looking to save money on insurance, you should avoid skimping on the basics, so you can be sure you are covered in case somebody files a claim.

Instructions

Difficulty: Moderate

1. Compare several providers. There is no basic rate for workmen's compensation insurance, which basically means you can be charged anything the company decides is a fair price. By comparing providers and asking for quotes, you should be able to choose the company best suited to your needs and budget.
2. Avoid claims as much as possible. The fewer claims that are filed, the more money you can save on the premiums in following years. Workmen's compensation insurance premiums tend to rise considerably after each claim, even if the claims don't result in awards.
3. Divide your employees into groups. If you have certain high-risk workers, you should secure full-coverage insurance for them. All other workers could probably be covered by a basic insurance policy that takes medical costs into consideration, but doesn't account for certain accidents that are unlikely, for example, in an office setting.
4. Search online for quotes. You can save a considerable amount of money this way while also being able to compare what is offered without pressure from salespeople.
5. Ask for a group rate. If you have a large number of employees to insure, you may be able to get a group discount. This is especially true if all your employees need the same level of coverage or if your business is low risk. Being single, under a certain age or meeting other factors may also qualify you for a discount.
6. Ask for a discount if you have had the insurance for several years without any filed claims. By the time you reach your third or fourth year without claims, you will be considered low risk and may qualify for a discount.

Tips & Warnings

• Prevention is the most important thing you can do to save money on workmen's compensation insurance. Educate your employees in safety measures and make sure the workplace is up to code and equipped with the latest safety gear.