Are Your Records Prepared for Your Work Comp Audit?

It’s been said that “Today’s preparation determines tomorrow’s achievement.” Your thoroughness in preparing for your work comp audit will determine the success of your outcome.

It is imperative that you, as the owner of the business, oversee all documents provided to the auditor. For example, do not simply have the auditor work with your bookkeeper without inspecting the final documents provided to the auditor. Over the years, we have experienced many incorrect audits because the bookkeeper did not provide the correct records.

You will want to have these records prepared as they are normally REQUIRED to complete your audit:

  1. Gross Payroll Journal / Employee’s Earnings Records minus excluded remuneration.
  2. General Ledger / Canceled Checks / Cash Disbursement Journal / Check Register.
  3. Clerical / Salespersons form completed by a principal of your company.
  4. State Quarterly Wages and Withholding Report (Form DE6 and DE6B).
  5. Employee’s Quarterly Federal Tax Return (Form 941).
  6. Form 1099 if applicable
  7. Sub-Contractor Verification form with Contractors License Numbers
  8. State Report of Independent Contractors Form DE542.
  9. Copies of Certificates covering any Sub-Contractors work attached to Sub-Contractor Detail Sheet (Form 6090). Any subcontractor for which this completed information is not provided at the audit will be included for premium purposes.

 

If you would like to discuss any aspect that affects your Workers Comp coverage and premium, here are 4 easy ways to reach us:
Phone: 877-994-6787
Text: 951-482-8144
Email: info@correctcomp.com
Web: www.correctcomp.com

Here are some kind words from a business that trusts Stromsoe Insurance Agency:
“We’re very happy with you, you’ve been great for us in the handling of our personal & business insurance.”
Lucy & Mario Dominguez- Dominguez Grove Service – Murrieta, CA Client Since 1991

The CorrectComp system is a division of Stromsoe Insurance Agency

Are You Paying the Correct Work Comp Premium?

There are many factors that contribute to your company paying the correct work comp premium. Below are considerations you must be thinking about when purchasing work comp insurance. 

PAYROLL

INCLUDES wages, salaries, commissions, cash payments to subcontractors, bonuses, vacation, holiday and sick pay, straight pay for overtime hours, market value of lodging provided, market value of gifts, and all other substitutes for money.

DO NOT INCLUDE WITH PAYROLL:

  • Overtime pays in excess of straight pay for the employee. Put the overtime excess payroll in the box marked “Overtime Excess.”
  • Payroll of owner of sole Proprietorship; or husband and wife Employer if joint ownership is NOT a corporation or partnership.
  • Payroll for corporate officers, partners, or member managers of LLC if specifically EXCLUDED BY CURRENT ENDORSEMENT to the policy.
  • Wages of subcontractors that provide you with a valid Certificate of Workers’ Compensation coverage.

 

INTERIM RATE (Actual Rate You Pay per $100 of Gross Payroll)

The RATE listed on your payroll report or policy is an adjustment to company base rates and already includes the competitive rating credits/debits, which apply to your policy. This rate may include an Estimated Premium Discount, which is based on an estimate of your payroll/premium for the policy. Your final bill will use company base rates, apply competitive rating credit/debits, and calculate a Final Premium Discount for your policy. If ESTIMATED payroll DIFFERS FROM ACTUAL PAYROLL, final Premium Discount can change at FINAL billing after audit, and may result in premium due or a refund.

 

CALCULATING PREMIUM

To calculate premium due for each classification, multiply the gross annual payroll by your interim rate as a percentage. Always deduct excluded remuneration before calculating.

 

EXPERIENCE MODIFICATION

If the Workers’ Compensation Insurance Rating Bureau, NCCI or your state jurisdiction issued an experience modification (XMOD) for your policy (must meet and maintain 3-year premium threshold), you should have been notified by an endorsement. The XMOD will appear in the Experience Modification section of the payroll report or on your policy declaration. Please multiply the XMOD by the gross premium amount to calculate total premium due for the reporting period.

 

EXECUTIVE OFFICERS AND PARTNERS

UNLESS SPECIFICALLY EXCLUDED by endorsement, officers or partners are covered for benefits. Payroll should be reported, subject to minimum and maximum remuneration per annum for each officer or partner. The minimum and maximum payroll amounts for most recent years are as follows:

Policy Year                                      Minimum Payroll                          Maximum Payroll

2020                                                       $54,600                                                 $139,100

2021                                                        $54,600                                                 $139,100

 

CONSTRUCTION CLASSIFICATION BY WAGE LEVEL

Certain construction classes are divided into multiple codes depending on the regular hourly wages paid to an employee. Report payroll according to the wage level indicated on the front of your payroll report or declaration page. The wage thresholds may change from year to year and are subject to verification at time of audit.

 

CONTRACT WORKERS (SUB-CONTRACTORS) (1099s)

To exclude contract workers from reported payroll, a valid license (when required) and a valid Certificate of Workers’ Compensation coverage MUST be available and shown to auditors (at time of audit) to avoid additional premium charges. Contact our office if you have any questions about contractor (1099) / employee (W-2) status.

 

CHANGES IN OPERATION

ANY CHANGES in operation MUST be reported in writing to the Insurance Company immediately. Any additions, changes or updates of a classification, including 8810-Clerical and 8742-Outside Sales, must be approved, and endorsed on your policy by the Insurance Company before the payroll report can be processed and the classification allowed. To request any of the below, contact our agency at 877-994-6787.

  • A new classification,
  • a change in operations,
  • change in ownership,
  • or other changes such as officers, location, etc.

 

If you would like to discuss any aspect that affects your Workers Comp coverage and premium, here are 4 easy ways to reach us:
Phone: 877-994-6787
Text: 951-482-8144
Email: info@correctcomp.com
Web: www.correctcomp.com

Here are some kind words from a business that trusts Stromsoe Insurance Agency:
“I can always count on the staff at SIA to work with me and do some of the most engaging hard work to get my insurance issues handled as well as the simple easy items I should probably do myself. Small or large they are willing to take the task on. The great people at SIA are always willing to go the extra mile.”
Terri Barry – Safe and Secure Locksmith Service – Murrieta, CA – Client Since 2002

The CorrectComp system is a division of Stromsoe Insurance Agency

14 Work Comp Audit Questions, Answered! | Part 2

A work comp audit is the examination of a policyholder financial and payroll records after the expiration of a policy. This process is done to determine the accuracy of the estimated premium when the policy was started. The number one way to fly through an audit is to be prepared!

You should always connect with your independent insurance agent to discuss all questions you have before the audit is conducted.

Here are the next 7 of the most common workers comp audit questions, answered!

 

Q8: Are sub-contractors subject to workers comp premium?

A: True independent contractors normally are not subject to a premium charge. Independent contractor status is determined on a case-by-case basis.

If you use contractors, you will be asked to supply some or all the following: business name, business license, copy of contract, Certificate of Workers’ Compensation Insurance, and contractor’s license number. If a construction contractor has a valid contractors’ license, a valid Certificate of Workers’ Compensation Insurance (if the contractor has employees), or an exemption from workers’ compensation issued by the Contractor’s State License Board, he/she may be considered independent.

You MUST Keep license information and Certificates of Insurance on file, or you will pay additional premium charges.

 

Q9: Why are there two or more classifications for some construction classifications?

Some construction classifications are dual wage classifications. The employee’s base hourly wage rate determines which class code applies. These wage rates are subject to verification at the time of the audit through a valid source, such as timecards, personnel records, and employee earning records. Keeping records that clearly show hours, job duties, and wage rates will allow you to take advantage of the lower-rated dual class.

If you are paying your employees by piecework, you must keep a record of the number of hours worked for each employee to qualify for the lower-rated dual class. If you do not keep a time log of the hours worked, the auditor will divide the total payroll by 40 hours per week to determine an hourly wage rate.

 

Q10: If my employees divide their time between different job assignments, can I divide their payroll between different classifications?

It depends on the classifications. It is important to note that in the case of clerical and outside sales employees, there is no payroll division allowed. There are other class codes that prohibit payroll division as well. If your employee divides time between two or more class codes that allow for payroll division, then you can divide their payroll provided the proper records are kept. This may include timecards or an employee log that keeps track of the hours worked by each employee for each job duty.

Payroll may not be divided by means of percentages, averages, estimates, or any basis other than specific time records.

 

Q11: What is overtime excess and how do I report it?

A: That portion of an employee’s overtime wage, which is over and above, the regular rate of pay is called overtime excess. This includes increased pay for time worked on holidays, Saturdays or Sundays, or the number of hours worked in any week or day beyond the standard for the industry. Overtime excess does not include extra pay for swing or graveyard shifts, for working certain hours on the clock, or incentive or bonus pay figured on volume without regard to hours worked.

Example: If your employee’s hour wage is $10 and the overtime rate of pay is $15 (at time-and-a-half), the overtime excess would be $5. In this example, you pay premium on the $10. An easy way to calculate the overtime excess for the time-and-a-half is to divide the gross overtime by 3 ($15 Divided by 3 =$5)

 

Q12: What is a waiver of subrogation and how do I report it?

A: If you contract with a company that requires you to provide a waiver of subrogation on your workers’ compensation policy, you waive any right to a third-party settlement for injuries to your employees that occur on that company’s job site.

When you have a waiver of subrogation for one or more companies endorsed to your policy, you need to keep track of employee payroll incurred while on the job site of those companies.

You can report your waiver payroll in two ways. First, when completing payroll reports (if applicable), you may use the blank lines below the class codes and list the waiver by class codes. For each class code that has waiver payroll, you would multiply the total waiver payroll by your billing rate and the waiver percentage. This amount is the additional premium you must pay. The second way is to keep the records as noted and wait for the audit.

Example: Your premium for $10,000 at an interim billing rate of $5 per $100 payroll is $500. Multiply the premium of $500 by the waiver rate of 3%. The additional premium charge to cover the waiver of subrogation charge is $15. Your total premium charge including the waiver is $515.

 

Q13: Are payments made to family members subject to premium?

A: Yes, as employees they are entitled to workers’ compensation benefits. 

Special rules apply to family members living in the main household while working on a family-owned farm.

 

Q14: What happens after the audit is completed?

A: You may ask for a full copy of the audit upon completion. Once complete, the audit is reviewed. The results of the audit will be sent to you in the form of a final statement.

What happens if I disagree with the results of the audit?

You should immediately contest the audit in writing with the insurance company. Identify the areas of the disagreement and discuss them with your independent insurance agent or the auditor. You may be asked to supply additional documentation to verify the discrepancy. Please call our agency and the audit supervisor if the matter remains unsolved.

Keeping complete and accurate payroll records is very important and may save premium dollars.

 

If you would like to discuss any aspect that affects your Workers Comp coverage and premium, here are 4 easy ways to reach us:
Phone: 877-994-6787
Text: 951-482-8144
Email: info@correctcomp.com
Web: www.correctcomp.com

Here are some kind words from a business that trusts Stromsoe Insurance Agency:
“I’ve been with Stromsoe Insurance For over 15 Years. Their Murrieta Office was actually my first Project after I got my license. I refuse to go anywhere else! They shop all my policies to save me money and i can talk to everyone with one phone call! I recently Moved to Arizona, and Started a new Company. Stromsoe was able to get me going and again has all my policies! Thx Guys!”
Mike Hughes – Semper Fi Plumbing, Inc. – Surprise, AZ – Client Since 2007

The CorrectComp system is a division of Stromsoe Insurance Agency

14 Work Comp Audit Questions, Answered! | Part 1

A work comp audit is the examination of a policyholder financial and payroll records after the expiration of a policy. This process is done to determine the accuracy of the estimated premium when the policy was started. The number one way to fly through an audit is to be prepared!

You should always connect with your independent insurance agent to discuss all questions you have before the audit is conducted.

Here are the first 7 of the most common workers comp audit questions, answered!

 

Q1: Why am I being audited?

A: Audits are routinely conducted to verify the operations of the insured and to update policy information such as changes in operations, business locations, and new ownership. Audits are conducted to determine correct premium, and to confirm information used for calculating rates. Premium, experience modification, and classification rates are affected by the results of an audit.

 

Q2: What if I have questions regarding my workers’ compensation classifications?

A: The audit is an excellent opportunity to review and confirm proper classifications for the policy. The auditor will speak with the person who is best able to answer questions regarding your operations. It is not recommended that you refer the auditor to your bookkeeper or CPA to finalize the audit.

 

Q3: What records will I be asked to provide for the audit?

A: In general, you will be asked to provide State Quarterly Wage and Withholding Reports (DE 6s), payroll journals, and the payroll reports for the period being audited.

Since the information needed for each audit may differ, you may also be asked to provide other records that relate to your workers’ compensation policy. Examples may include payroll registers, time books, time cards, individual earnings records, check registers, check stubs, check books, cash disbursement journal, cash book, petty cash book, general or subsidiary ledgers, job cost records, confidential records, bonus ledgers, commission ledgers, profit sharing reports, 941s, W-2s, W-3s, 1096s, 1099s-Misc., 540, 1040 Schedule C, certified payroll, prevailing wage determination sheets, etc.

 

Q4: What type of wages and benefits are subject to premium?

Subject to Premium:

A: Premium calculations are based on gross payroll, not net payroll. Gross wages include salaries, commissions, bonuses, vacation, holiday pay, sick pay, overtime base wages, the market value of gifts, all substitutes for money earned or paid during the policy period including meals and lodging in lieu of wages, automobile allowances, and some pension play payments explained below.

Not Subject to Premium:

A: Payroll for officers specifically properly excluded from coverage under the policy, overtime excess (explained later), tips, severance pay, the value of an automobile furnished to an employee, reimbursement for expenses with receipts, and salary reductions to fund the welfare or fringe benefit portion of a Section 125 cafeteria plan.

  • Retirement/Pension Plans-Subject to Premium:
    Any amount by which an employee’s salary is reduced to fund a pension or deferred compensation plan.
  • Retirement/Pension Plans-Not Subject to Premium:
    Employer contributory payments including group insurance, stock purchase plans and qualified retirement plans. The exercise of stock options and withdrawals from deferred compensation plans are also not subject to premium computation.
  • What if I pay my employees in cash?
    If you pay your employees in cash instead of by payroll checks, you must keep a log of the cash payments, the hours worked, the date paid, the amount paid, and the first and last name of the employee. Otherwise, all cash withdrawals on your check register will be included in computing workers’ compensation premium.

 

Q5: Which employees qualify as clerical (code 8810)?

A: The use of this classification is subject to specific restrictions. The clerical employees must be physically separated from all the other working areas and their duties must be confined to general office work. Payroll division with any other class is prohibited.

 

Q6: Which employees qualify as outside sales (code 8742)?

A: Outside sales employees may be engaged in solicitation, collection activities or meeting with clients outside the office. The balance of their time can be spent in the office performing clerical duties. If they have duties of any other nature, they would be classified accordingly. Payroll division with any other class is prohibited.

The auditor will ask for the names, job titles, and payroll for clerical and outside sales employees. Having this information available before the auditor arrives will save time.

 

Q7: How do I report the earnings of our corporate officers, partners, or managing members of limited liability companies?

A: Unless specifically properly excluded by endorsement, officers, partners, or member managers are covered for workers’ compensation benefits. Payroll is reported subject to a minimum and maximum for each person. 

Those covered must be reported in the classification that best describes their job duties. They cannot be reported as clerical or outside sales unless their duties are confined to the work described in these classes. If they directly supervise any employee, they must be reported in the classification supervised.

Be sure to notify your independent insurance agency immediately of any changes in ownership.

 

If you would like to discuss any aspect that affects your Workers Comp coverage and premium, here are 4 easy ways to reach us:
Phone: 877-994-6787
Text: 951-482-8144
Email: info@correctcomp.com
Web: www.correctcomp.com

Here are some kind words from a business that trusts Stromsoe Insurance Agency:
“I’ve been with Stromsoe Insurance For over 15 Years. Their Murrieta Office was actually my first Project after I got my license. I refuse to go anywhere else! They shop all my policies to save me money and i can talk to everyone with one phone call! I recently Moved to Arizona, and Started a new Company. Stromsoe was able to get me going and again has all my policies! Thx Guys!”
Mike Hughes – Semper Fi Plumbing, Inc. – Surprise, AZ – Client Since 2007

The CorrectComp system is a division of Stromsoe Insurance Agency

State Fund Announces Two Separate Funds to Assist California Workers and Businesses

The California State Compensation Fund announced two separate funds to assist California workers and businesses during the COVID-19 crisis.  The Essential Business Support Fund and the Essential Worker Support Fund are funds available through State Fund to help California businesses and workers.

The State Fund Essential Business Support Fund, a $25-million fund designed to assist our policyholders who are operating as essential businesses during this unprecedented time.

The fund provides grants to qualified policyholders to help defray the cost of safety-related expenses, planned or already incurred, related to protecting their employees from COVID-19.

State Fund policyholders who are operating an essential business may be eligible to apply for this grant. The full list of qualifications, rules and requirements is available here.

Policyholders can apply by completing this application and returning it to covidsafetyfund@scif.com as soon as possible.

 

How To Prepare For Your Insurance Premium Audit

 

An audit of one or more of your business insurance policies is one situation that requires your early and immediate attention.

The scenario with every insurance provider is different. The scenario will be something like this: Your insurance carrier will contact you. They want to conduct a premium audit. You’ve already paid your premiums for the year. Most policies are based on the best estimate of information you can provide at the time your policy is issued or renewed, but that information could change over the course of the policy year. You may end up not paying enough or paying too much for your insurance based on your actual payroll or gross sales or change in business operations.

This is where a premium audit process comes in. Your insurance company will conduct a premium audit after your policy term expires, review your actual business operations, and calculate your final premium. Depending on the size of your operation, an auditor may be able to gather the information they need over the phone, electronically, you may be asked to fill out and return a simple form online or through the mail. For some or larger operations, an auditor may prefer to visit your office and review your records with you. This may take an hour or two of your time depending on the type of business and whether or not there have been changes in your business operations.

The auditor will let you know prior to your appointment exactly what information they will need to review. Having all the requested information ready prior to the meeting will shorten the process. They may ask to review accounting records including payroll, journals, disbursements, invoice reports, sales reports, vendor reports, general ledgers, social security reports, state unemployment forms, or other tax reports. You may also be asked for information about the business entity, ownership, corporate structure, and the business operation. It’s also important to understand any excluded persons from a policy prior to the audit.

Since an audit can encompass such a vast array of data, here are some tips for preparing:

  1. First decide which staff member is best able to work with the auditor. We do not always recommend referring the auditor to a bookkeeper or CPA. No one cares about your business like you do. This should be someone familiar with the work done by all departments and employees and is knowledgeable about the records needed to complete the audit.
  2. Review the appointment letter and prior year’s audit billing statements to familiarize yourself with the data the auditor will be reviewing.
  3. Gather all pertinent accounting records.
  4. Review payroll documents to make sure that they include breakdowns of wages by employee, department, and class code. Breakdowns should also include overtime pay and tips if applicable.
  5. Verify that you have certificates of insurance on file for any subcontractors you may have used. Be sure that the documents show that the subcontractors have their own current workers’ compensation and general liability insurance.
  6. Lastly, ask questions during the audit to clarify anything you do not understand.

Maintaining detailed payroll and sales records for the policy period is the best way to ensure that the audit process goes smoothly. If those records are organized, the audit can be completed with minimal effort. Don’t let a premium audit be a complicated process.

Our goal as your independent insurance agency of choice is to bring awareness and guidance to most situations that may occur with your insurance program. If you have questions regarding the premium audit process and need our assistance before, during or after the audit process, please us know.

Here’s 3 easy ways to reach us:

  1. Call 951-600-5751
  2. Text 951-482-8144
  3. Email insure@siaonline.com

We appreciate this and every opportunity to serve and protect you!

How to Avoid Costly Mistakes on Your Workers Comp Audit

Don’t make these costly mistakes with your workers comp coverage.

When you operate a business, it’s normal to have your coverage audited from time to time.  However, should a routine audit uncover issues or inconsistencies with your employee codes or payroll, then you might be in for an expensive rate increase.  To ensure this doesn’t happen to you, here are some of the steps that you should take.

  • Prevent Code Misclassification

During an audit, many business owners discover that they have been underpaying (or in some cases, overpaying) on their insurance premiums.  Generally, employee code misclassification is at the root of this issue.  Code classifications play a major role in how a business’s workers compensation insurance premiums are calculated.  Unfortunately, with 700 codes to choose from, many business owners struggle to apply the right codes to coincide with their business and their employees’ functions.

  • Avoid Inconsistent Payroll Reporting

Workers compensation premiums are also based on a business’s payroll information.  However, when a business fails to report payroll information to their insurer, issues can arise.  Sometimes inconsistent reporting conceals the hiring or release of employees.  When payroll information is inaccurate or not up-to-date, it makes it impossible for insurers to gauge a business’s true risk and adjust its coverage and premiums accordingly.  If an auditor discovers payroll inconsistencies, then this can result in major workers compensation insurance rate adjustments.

These are some of the steps that you should take to ensure that a workers compensation audit does not result in higher rates.    Want further help with your commercial coverage?  Make sure you have the right business insurance protection at the best price by giving our knowledgeable Total Protection Team a call at 951-600-5751, sending an email to insure@siaonline.com, or stopping by our Murrieta, California office today.  We are always happy to help!

How You Can Spot a Fake Workers Compensation Claim

Watch out for these signs of a fraudulent workers compensation insurance claim.

While you always want to give your employees the benefit of the doubt, sometimes they are just criminals in disguise. According to the National Insurance Crime Bureau, workers compensation fraud costs the system approximately $30 billion on an annual basis. With workers compensation fraud such a widespread problem, it’s important to keep an eye out for a fake claim at your place of business. Here are some of the signs you should watch out for.

Inconsistencies in the Employee’s Story

If your employee’s account of the story keeps changing or if their account does not fit the evidence gathered at the scene, this is a clear sign of dishonesty.

A Lack of Witnesses

While it’s possible that the employee was simply alone at the time of the incident, if the employee normally works around others, you may want to investigate their story a little more closely if no one witnessed the accident.

The Involvement of a Problematic Employee

If the employee has expressed their dissatisfaction with the company or had performance or behavioral issues in the past, they may have submitted a claim as a way of getting back at the company. Make sure you investigate the employee’s account very carefully for any inconsistencies.

An Unwillingness to Cooperate

Sustaining an injury at work is a scary experience, but if the employee is being particularly unresponsive or difficult, then it’s possible that they are hiding something. Refusing to undergo diagnostic tests or not responding to communication efforts should raise a red flag for you.

These are some of the signs of workers compensation insurance fraud that you need to look out for. Do you have further questions regarding your workers compensation or other commercial insurance needs? If so, contact the experts at Stromsoe Insurance Agency in Murrieta, California. Our dedicated team is ready to assist you today.

The Basics of Workers’ Compensation

Understanding the basic coverage of workers’ compensation insurance.

If you’re a business owner, you may be overwhelmed with the insurance policies you need. From protecting your business’s property to safeguarding your employees, everything should be covered so that you can focus on building your company. An insurance coverage that is non-negotiable is workers’ compensation. The law requires employers to have this coverage even if they have only one employee. Out-of-state employers may need workers’ compensation coverage if an employee is regularly employed, or if a contract of employment is entered.

Workers’ Compensation 101

If an employee gets hurt on the job, the employer is required by law to pay for workers’ compensation benefits. Whether a member of staff is injured in a single event (such as slipping and falling on a wet floor or getting into an auto accident while making deliveries) or repeated exposure to repetitive-motion injuries at work, the employer can be held responsible. 

Employee Protection

A workers’ compensation insurance policy is part of your cost of doing business, so no employee has to pay for the policy. As a business owner, you must post the notice to employees poster at work where employees will be able to see it. This notice details information about workers’ compensation coverage and where to find medical care for work injuries.

Fall Into Your Safety Net

If your employees get sick or hurt on the job, you may need to follow this standard procedure:

  • Provide a workers’ compensation claim for them within one working day after the work-related injury or illness is reported.
  • Return a copy of the completed form to the employee within one working day of receipt.
  • Forward the claim form and your report of occupational injury or illness to the claims administrator within one working day.
  • Within one working day of receiving the employee’s claim, authorize up to $10,000 for appropriate medical treatment.
  • Provide transitional work that is light duty whenever necessary to keep the injured employee in the loop.
  • If the employee is the victim of a crime that happened at work, you must give notice of workers’ compensation eligibility within one working day of the crime.

To prevent your employees from getting hurt at work, be sure to follow proper safety procedures and supply them with any safety tools or education. In addition to protecting your employees, safeguard your business with reliable workers’ compensation insurance. Contact our knowledgeable team at Stromsoe Insurance Agency for all of your personal and business insurance coverage needs.

Workers’ Compensation Savings For Small Businesses

How To: Save On Your Workers’ Compensation

As a business owner, you know that workers’ compensation is important. Not only does it protect your workforce—ensuring they get the medical care and lost wages reimbursements they need to maintain their quality of life—but it is also crucial for your business. This coverage helps you take care of your team without compromising your bottom line.

That does not mean you want to pay a pricey premium, though. Here is a quick guide on how to save on your workers’ compensation.

  • Get Grouped: Group rates can help you get significant savings on your workers’ comp coverage. If your business is not large enough to qualify for this type of coverage on its own, consider joining a trade association with at least 300 members or asking a couple of other businesses with similar risks to join with you in securing coverage.
  • Support Safety: California requires you to have a written safety program. Why not show it to your insurer—along with documentation about your regular safety trainings—to let them know how much you prioritize safeguarding your staff. Informing your insurer that you are making strides towards minimizing workplace accidents can help you save.
  • Prepare Programs: Certain programs—like a substance-free workplace program or return-to-work program—can help your employees minimize injury times and injuries themselves. By implementing these types of programs to help your workforce stay safe on the jobsite and protect their health if an injury does occur, you can show your insurer you are actively reducing your risk and their costs, which should lower your premiums.

Want to talk to an insurance expert about how to keep your workers’ compensation as affordable as possible? Contact Stromsoe Insurance Agency today! As California business insurance experts, our dedicated team is standing ready to help you get the best workers’ comp at the best price.