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Buying Workers’ Compensation Insurance: Tips for New Clients

Buying Workers’ Compensation Insurance Tips for New ClientsNew businesses often discover that purchasing a New Jersey Workers’ Compensation Program can be a complex process. As this coverage is almost always required for any kind of business, the costs can be an additional stress factor when starting a new company, if they don’t know what to expect. As a new employer, take the following into consideration when shopping for Workers’ Compensation coverage.

The Fundamentals

These laws are governed by each individual state. In order to determine what standards you must abide by, check your state’s regulations. For example, some states require you carry this coverage with only one employee and others require 5+ employees. Further, understand how the premium will be calculated and how the coverage functions. Next, it is important to find a trusted agent to consult with. These experts will help you navigate the policy that is best suited for you.

Define Clear Job Descriptions

The descriptions of the jobs performed by your employees will help to categorize your business. There are currently an estimated 700 classifications of Workers’ Compensation available. Your agent can assist with this to ensure proper classification and payroll payment if you have any questions.

Payroll Projections

Keep in mind your premium calculation is based on payroll times the rate per 100 for the job classification in which your employees are assigned, says Workers Compensation Consultants. As the “exposure basis” on a policy is payroll, it is imperative that these job classifications are as accurate as possible for the following 12 months, says WCC. Lastly, bear in mind that the final premium price is dependent on an audit has been completed.

Monitor Payroll

If payroll exceeds your original projections, notify your agent immediately and have them update the figures. This will prevent a poor audit in the future.

Audits

Verify audits and calculations and become familiar with how they are determined. By doing so, you are less likely to overpay for your Workers’ Compensation coverage.

At Associated Specialty Insurance Agency (ASIA), we specialize in providing Workers’ Compensation coverage to a variety of industries in our target states of New Jersey, Pennsylvania, New York, Connecticut, Delaware, Maryland, Virginia, North Carolina and Florida. For more information, contact our knowledgeable experts today at (866) 679-7457.

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