UNDERSTANDING WORKERS COMPENSATION (PART III)
Understanding workers compensation is a four part series written by Bill Stankevitz, senior vice-president of St. Charles, IL based Wine Sergi & Co. LLC. He has been involved with the insurance industry in many capacities for the last 45 years and invites people to visit his blog “insurance answers for business” at www.mysweethaven.com/blog.
In part three, the six components of how premiums are set is covered. It references the regulations specific to Illinois so check with your state to see if these rules apply to you. In any case, these are areas that can potentially help moving companies or other businesses in other states save money on premiums as well.
A contractor’s credit can affect the policy in certain cases and the premium “discount” amount can change between different insurance companies and different states by as much as 7%. Excess limits charges as related to umbrella liability coverage is covered as well as the terrorism catastrophe components of premium calculation.
Overall the message in this article, I feel, is find out the specifics from your workers compensation insurance agent on what components make the premium calculation process. Don’t blindly give payroll information and accept whatever premium you get without understanding how the process works. As with everything else, the more you know the better decisions you can make and the more money you can save. How workers compensation affects a moving company can be managed and adjusted with some homework and proper decision making. Always consult a professional. To read this article Understanding Workers Compensation Part III.
I didn’t know there could be fluctuations in the insurance premium, if I’m ever injured on the job I’ll be sure to be more aware of this and definitely not just blindly accept what the give me, without a decent explanation.
Its always good to ask more questions, it can save you thousands.
Thanks for the advice. I’m going to try to find out more on my company’s premium policy, but before I get injured.