WORKERS' COMPENSATION INSURANCE
Contact
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Landline: (227) 250 - 0009
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Licensed in MD, PA, NJ, VA, DE
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For Business Entities and Individuals
Workers' Compensation Insurance
Workers' compensation insurance provides wage replacement and medical benefits to employees who sustain injuries or illnesses in the course of employment. In exchange, employees relinquish the right to sue their employers for negligence, creating a no-fault system that benefits both parties.
Final Premium and Audit Process
When you purchase workers' compensation insurance, the initial premium you pay is typically an estimate. The final premium is determined after an audit conducted by your insurance carrier. This process accounts for changes in your payroll throughout the policy period. Since payroll fluctuations can impact your premium, it’s essential to complete this audit annually to ensure proper coverage and compliance.
Factors Affecting Workers' Compensation Premiums
The cost of workers' compensation insurance is influenced by several factors, including the "classification" of your business. Classifications group businesses with similar operations and risk profiles based on historical loss data. This system ensures fairness by calculating rates according to the loss history of businesses within the same classification. Additionally, economic conditions in your state are factored in to determine specific premium rates.