09 Dec Buying Work Comp For The First Time
Buying Workers Comp for the first time
Buying Workers Comp for the first time can be a stressful experience. Many people don’t realize how difficult it can be obtaining pricing for their Workers Comp when purchasing for the first time. We will go over a few quick tips on how you can get the most for your money.
Buying Workers Comp for the first time? Find a Broker!
If you want to get the best rate on your Workers Comp, you should find an Insurance Broker. Insurance Brokers often have access to dozens of Insurance Carriers. A broker will contact all of these carriers on your behalf and present you with the best quote(s) for your company. The best part is that an Insurance Broker represents you, not an Insurance Company. If you find a good Broker to work with, you will never want to go back to a captive Insurance Agent again!
Hire your employees AFTER you buy Work Comp for the first time!
Many don’t know this one until it is too late. If you hire your employees before you buy Work Comp coverage, you may run into some unintended problems when looking for quotes. Many carriers consider this a lapse in coverage, even if it is only a few days. Purchasing Workers Comp Insurance for the first time becomes much harder when you have a lapse in coverage. This can mean some carriers will not work with you for several years, until you can show 3 years of continuous coverage.
When buying Work Comp for the first time, be conservative on your application.
Work Comp quotes are often based on the payroll you expect to pay for the following year along with the type of work your employees will complete. Many business owners , when buying Work Comp for the first time, give very high estimates on their projected payroll. What ends up happening is they overpay for their Work Comp and receive a refund at the end of the year when their carrier completes their annual audit. We believe most business owners would prefer to keep that extra money in their bank, rather than have the Insurance Carrier hold onto it for the whole year.
If you have any questions about buying Work Comp for the first time, give us a call! You can reach our Work Comp specialist at 925-297-4829.
All information is general in nature and is intended to provide guidance only. It is up to you to request specific coverage options, the agency and agent do not bear this responsibility. Always read the policy if there is a questions about coverage or a claim. If any information herein should conflict with your actual policy’s specific language, the policy language will be controlling.