How to Get Workers’ Compensation Insurance: A Step-by-Step Guide for Business Owners

Work-related injuries can lead to significant financial losses if you don’t have a workers’ compensation insurance policy for employees. Getting a policy can be as easy as calling a reputable insurance company offering business insurance. This article details how to get workers’ compensation insurance. 

Understanding Workers’ Compensation Insurance

Employers get workers’ compensation insurance to pay claims when employees are injured on the job. The insurance covers various expenses associated with the injury, such as medical care, lost wages, and rehabilitative expenses. Policies are based on state laws, and most states require a policy.

Step 1: Assessing Your Business Needs

Before you do anything else, you want to assess your business needs when it comes to workers’ compensation.

Determine If Your Business Needs Workers’ Compensation Insurance

Look at state laws for workers’ compensation to see if it is required in your state. You may want to consult with an insurance professional licensed in your state to help you establish the need for workers’ compensation. 

Note that some contractors may need a workers’ compensation policy to fulfill contract obligations. 

Evaluate the Level of Coverage Required

Make sure to establish a policy requirement that meets the needs of your employees. While a typical office job may only need $100,000 in coverage, more dangerous professions may want to get a policy that covers $1 million in injuries and payouts. 

Step 2: Researching Workers’ Compensation Insurance Providers

The next step is researching the best provider for your policy. Shopping around can help you get the best-priced policy for your business. 

Types of Insurance Providers

Make the choice to work with an insurance agent or insurance broker. Employers may like working with a broker who will shop the policy around and work on behalf of the business. Agents represent different insurance companies. 

Factors to Consider When Choosing a Provider

Employers should choose an agent or broker who has a good track record of helping small business owners. Employers should feel that the person they work with is interested in their business and will help identify risks and set safety protocols to reduce work-related injuries. 

Step 3: Obtaining Quotes and Comparing Options

Compare policies that cover employees among several insurers to get apples-to-apples quotes. 

How to Request Quotes from Multiple Providers

With the same employee coverage set, get multiple quotes to assess policies. You can do this manually or allow us to help you get a quote from the best provider possible. 

Analyze and Compare Insurance Policies

Make sure to compare like policies. You don’t want to price out one policy for $1 million in coverage and compare it to a quote for $100,000 in coverage. These are vastly different policies with different coverage options. Make sure the quotes are for the same policy standards. 

Understand the Costs and Fees Involved

Realize that there may be additional broker fees associated with working with an insurance broker compared to an agent. This will inflate the cost of the policy because of the fees.

Step 4: Applying for Workers’ Compensation Insurance

To apply for workers’ compensation insurance, employers will need certain payroll data and employee information to get a policy. 

Prepare Necessary Information and Documentation

Business owners will need both the payroll data and their employees’ job descriptions to get a policy. Pricing is contingent on these two factors because they determine the size of the risk. 

Complete the Application Process

The online application process is simple once you have the right information at your fingertips. Follow the step-by-step questions that walk you through what is needed for the application. 

Step 5: Managing Your Workers’ Compensation Policy

Once a policy is obtained, employers should review it at least once per year. The best time to do this and shop the policy around is during the renewal period. At renewal, the policy will be audited to confirm the payroll data. At the end of the audit, a bill for excess premium will be assessed, or a refund will be processed. Because payroll is a significant factor of risk, it is audited annually and will determine the final and renewal premiums.

If you have a claim during the policy period, work with the claim department to ensure it is processed in a timely manner. You want employees to receive care immediately and have lost wages paid as soon as possible. 

Staying Compliant with State Requirements

Since every state has its own laws, ensure that you comply with all state laws. Your insurance agent will help you achieve this. Pay attention to any new state regulations that might change your requirements. 

The Role of Risk Management in Workers’ Compensation

Risk management can help reduce injuries and help keep insurance costs down. Work-related safety measures help employees understand safety protocols and reduce the chances of injuries. Many insurance carriers will offer discounts on workers’ compensation insurance to employers with safety plans in place. 

Navigating How to Get Workers’ Compensation Insurance to Protect Your Employees

Work-related injuries can happen to any business at any time. Even the businesses with the most safety protocols in place are not exempt from injuries. This is why getting a workers’ compensation policy is so important. Ensure you get a policy with enough coverage to handle the types of possible injuries that may occur. Connect with a top-tiered carrier today.