Questions to Ask Your Workers’ Comp Broker
Hiring a workers compensation insurance broker can be an overwhelming endeavor. It is easy to fall back on their expertise and refrain from asking questions. It is important to be proactive on your own coverage. You want to make sure you are getting the best coverage for the price. You don’t want to end up with inadequate coverage or stuck paying high premiums for your policy.
Questions to Ask Your Broker
- What are the state rules and regulations for coverage? Most states mandate that businesses have workers’ compensation insurance. Each state’s rules and regulations are different. Factors like owner exclusion and minimum payroll requirements affect your rates. Even if your state doesn’t mandate coverage, you will be responsible adhering to all workers’ compensation laws.
- Is there automatic coverage for work in other states? Not all policies cover employee state cross state lines. If you or your employees do any work outside of your primary state, you want coverage that extends to other states.
- Do special programs like those on safety and drugs impact workers compensation rates? Many things affect rates. The standard calculation uses classification codes and payroll to determine premiums. Your workers compensation insurance broker should be able to tell you what carriers offer policy credits for special programs.
When shopping for workers’ compensation insurance, come prepared to ask questions. Your broker is there to find you the best coverage. It is wise to know what questions to ask to make sure your broker is securing you the best plan for your business.