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How to Get the Best Workers' Comp Rates as an IT Contractor

When you’re working as a technology consultant or contractor, you have to manage a constant balancing act: bringing in revenue, covering costs, completing assignments, prospecting for new clients, and maintaining sanity. Oh, and sleeping. You’re also expected to do that every now and then.

While most IT professionals have dozens of balls in the air at any given time, one of the most pressing issues is often that of money: do you have enough coming in to cover what needs to go out? Specifically, do you have enough revenue to cover essential business expenses like Workers’ Compensation Insurance?

This question becomes especially important when you receive a contract from a client that requires you to carry Workers’ Comp Insurance with specific limits.

5 Strategies for Keeping Your Workers’ Compensation Insurance Rates Low

Luckily, there are ways you can keep your Workers’ Compensation Insurance rates reasonable. Here are five steps you can take to ensure that your expenses are as low as they can be.

  1. Classify your business correctly. When you apply for Workers’ Compensation coverage with TechInsurance, the process starts by identifying your business through our dropdown menu where you select your industry and specific line of work. When you do that, be sure you’re picking the profession that best matches what you do. And if you don’t see an option that describes what you do, make sure to tell your agent. Workers’ Comp costs are based in large part on the industry you’re in: if you accidentally note that you’re in a higher-risk industry on your application, the rates you’ll be quoted will be much higher than they should be.
  2. Classify your employees properly. If you have employees, chances are they don’t all do the same thing. And depending on how different their tasks are, they may be exposed to different levels of risk throughout the day. For example, someone who’s installing cables has a higher risk of injury than someone whose work can be completed from a desk. Make sure to work with your agent to verify that every one of your employees is properly classified so that you’re not paying more than you need to for coverage.
  3. Shop around. This step is not possible if you live in Ohio, North Dakota, Wyoming, or Washington, because those states only offer Workers’ Comp through a state-run fund. But if you live anywhere else, you can easily compare multiple quotes by applying through TechInsurance. We’re an agent and we work with multiple insurance carriers. When you submit an application, we’ll send you quotes from any of our partner carriers that has plans available for you. Then you can compare prices and choose the one that best suits your budget.
  4. If possible, exclude yourself. Carrying Workers’ Compensation Insurance is mandatory in most of the country, but many states allow business owners to exclude themselves from coverage. If you do this, you pay premiums for one fewer person and can save a small but significant amount of money over the course of a year. Of course, know that if you choose to exclude yourself from coverage, you won’t have access to benefits if you are hurt on the job.

Getting low Workers’ Compensation rates may require a little legwork on your part, but it’s worth it in the long term for the savings you can enjoy.