Workers’ Comp Insurance

There is an old joke in the insurance world about a man who gets into an accident on the job. His worried workers gather around the injured man and say, "Are you all right? Speak to us!" Unfortunately, the injured worker can only manage these words: "Workman's comp."

But there’s no joke when it comes to the importance of having a workers’ comp insurance program.

After all, accidents happen, and states require that company-employed W-2 employees have workers’ comp insurance. Setting up a workers’ comp insurance program can be difficult, which is why TechInsurance offers one-stop online shopping. Because workers’ comp insurance standards vary state-by-state, the TechInsurance site’s search engine allows users to see each state's individual policy.

Most states use the NCCI, or National Council on Compensation Insurance, to determine premiums for workers’ comp insurance. Insurance companies often depend on the NCCI, a non-government organization, to create standards for remuneration. Remuneration is a method of calculating premiums based on the number of employees, salaries, benefits and other factors. Once this variable is determined, an insurance company must determine the risk factor classification of the company. As you can guess, a construction worker’s job carries a much higher risk than a bank teller’s. The workers’ comp insurance company plugs these two values into an equation to find the basic premium rate.

After you have your rate quote, a good workers’ comp insurance company will offer discounts. Many workers’ comp insurance companies will tend to overcharge, so keep a lookout. After your policy is up, the insurance company may reevaluate your company, and depending on your company’s reputation, may lower your workers’ comp insurance premiums.