How to get the best workers' comp rates for your tech company
4 strategies for keeping your workers’ compensation insurance rates low
As an IT consultant or independent contractor, one of your most pressing issues is often that of money.
Do you have enough revenue 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 second question becomes especially important when you receive a contract from a client that requires you to carry workers’ comp insurance with specific limits.
Luckily, you can keep your workers’ compensation rates reasonable. Here are four steps you can take to ensure that your expenses are as low as possible.
1. Classify your business correctly
When you apply for workers’ compensation coverage with TechInsurance, you begin by selecting your industry and specific line of work. We start here because workers’ comp costs are based in large part on your industry.
If you accidentally select a higher risk industry on your application, the rates you’ll be quoted will be much higher.
2. Classify your employees properly
If you have employees, chances are they don’t all do the same thing. Depending on how different their tasks are, they may be exposed to different levels of risk throughout the workday.
For example, someone who’s installing cables has a higher risk of injury than someone whose work can be completed from a desk. Work with your insurance agent to verify that every one of your employees is properly classified to ensure 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 as those states limit workers’ comp to state-run funds. But if you live anywhere else, you can easily compare multiple quotes by applying through TechInsurance.
When you submit an application, we’ll send you quotes from our partner insurance providers that have 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. (This depends on the laws in your state.)
If you do this, you 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 time and research, but it’s worth it in the long term for the savings you can enjoy.
Get free quotes and compare policies with TechInsurance
TechInsurance helps IT and tech business owners compare business insurance quotes with one easy online application. Start an application today to find the right policy at the most affordable price for your business.