If someone is injured while on the job at your small business, you need workers’ compensation insurance. This is mandatory in most states, and it protects your business from lawsuits related to those injuries. It also pays for medical costs and funeral expenses, among other things.
Insurance For Small Businesses
You can purchase this type of policy individually, or you can get it as part of a package with other commercial insurance policies like general liability and professional liability. A policy with all three can save you money and time, since you’ll have to submit one application and pay a single premium.
The price of a workers’ comp insurance policy depends on your profession, payroll, claims history and state requirements. Some of these factors are beyond your control, such as the workers’ comp class codes that the insurance company assigns to your business based on your line of work. However, you can affect the cost by working to prevent workplace accidents, ensuring your employees are properly trained and limiting their exposure to risk.
While lowering your workers’ comp premium is important, you should not sacrifice coverage for the sake of saving money. It is essential that your business has a strong workers’ comp policy to protect you from a lawsuit and ensure employees get the care they need after an accident.
Several providers offer cheap workers’ compensation insurance for small businesses. Some of them also offer discounted rates if you bundle your policies together with other types of commercial insurance. These providers include Allstate, Nationwide and Travelers. Allstate offers business property coverage to protect your physical assets, such as furniture and inventory, from theft and damage. Nationwide’s workers’ comp policy adapts to your business, and its risk control consultants can meet with you in person or over the phone to assess your risks. It also provides flexible billing through TravPay, which combines your premium payments with your payroll processing.
Travelers is another insurer that provides affordable workers’ comp insurance for small businesses. Its specialized policies include workers’ comp for contractors, which covers the medical costs of workers who are injured in the course of their work. Its general liability coverage can also help pay for damages from a lawsuit that arises from an employee’s injury.
Buying low-cost workers’ compensation is crucial for your small business. Fortunately, you can find a policy that fits your budget by carefully researching the available options and comparing rates. It is also helpful to consider the long-term effects of a policy, such as whether it will cover permanent impairment or disfigurement. The best place to start is with your current business insurance provider, as they may offer discounts on bundling your coverages. You can also use an online comparison tool to compare quotes from multiple providers. With a little patience, you can find the perfect cheap workers’ comp policy for your small business.
Shop Around and Compare: Obtain quotes from multiple insurance providers to compare rates and coverage options. Different insurers may have varying pricing structures and discounts, so it's essential to explore your options.
Consider Working with an Insurance Broker: Insurance brokers can help you navigate the complexities of workers' compensation insurance and connect you with multiple insurance companies. They can also negotiate on your behalf to find the best rates.
Safety and Risk Management: Insurance companies often offer discounts to businesses that have strong safety and risk management practices. Implement safety measures and provide training to prevent workplace injuries, as this can help lower your insurance premiums.
Group Insurance Policies: Some industry associations or business groups offer group insurance policies that can be more cost-effective than individual policies for small businesses.
State Fund Programs: Some states offer workers' compensation insurance through state-operated funds, which might provide competitive rates for small businesses.
Consider Pay-As-You-Go Plans: Some insurers offer pay-as-you-go plans, where premiums are based on actual payroll figures. This can be beneficial for small businesses with fluctuating workforce levels.
Adjust Deductibles and Coverage Limits: Consider adjusting your deductible and coverage limits to find a balance between cost savings and sufficient coverage.
Bundle Policies: If you have other insurance needs, bundling policies with one insurer might lead to discounts or cost savings.
Online Insurance Marketplaces: Utilize online insurance marketplaces that allow you to compare quotes from multiple insurance providers easily.
Work with a Knowledgeable Agent: Partner with an insurance agent or broker who specializes in serving small businesses. They can guide you through the process and help you find the most suitable coverage for your specific needs.
