Workers Compensation Insurance
West Hollywood Workers Compensation
What is Workers Compensation? Employers in California know work related accidents and injuries can happen in all types of industries. Some of these work related injuries can be avoided if the employer implements a simple risk management program and enforces safety procedures. Other accidents are simply accidents that happen as a fault of no one person and are unavoidable. Faulty equipment, slip and fall claims, automobile accidents while on company business all contribute to unforeseeable workers compensation claims. As an employer you need to purchase Workers Compensation insurance from EZ Center Insurance Services in West Hollywood No matter what type of business you operate we can provide Workers Compensation for it.
For employers in California Workers Compensation is mandatory even if you hire just one part-time employee. Severe penalties can result when an employer does not provide workers compensation insurance benefits to their employees. Also the purchase of a California Workers Compensation insurance policy through EZ Center Insurance Services is the best way to transfer your risk from you as the employer to another party namely the insurance company providing the Workers Compensation and Employers Liability coverage.
Workers Compensation Policy
A Workers Compensation policy provides benefits to the injured employee as provided by statute. This payment benefit is clear and concise as respects the type of benefits and the amount of benefits an injured employee is entitled to.
The premium you will pay to purchase a Workers Compensation insurance policy from is dependent upon several factors. The major determining factor is the class code assigned to your business type by the WCIRB (Workers Compensation Insurance Rating Bureau). It is a numeric code and can be identified by knowing the code your employee will come under – example clerical -not otherwise classified is 8810.
Some class codes cannot be divided by work duties. For example all employees in a Dental office are classified under the Dentist class code established by the WCIRB. You cannot separate the front desk help into a clerical class code to
obtain a lower rate. The class code will tell you “all employees” if a division of labor is not permissible.
Workers Compensation insurance companies have a base rate they charge per class code. The base rate applies per $100 of payroll. The rate can be credited or debited depending upon your experience modification factor and your policy territory. At their discretion companies can add debits or credits as they calculate the premium. Many consumers are under the impression that workers compensation insurance rates are established by the State of California. That has not been the case since open rating was established in 1995.
If you do have an experience modification factor that factor will largely drive your annual premium up or down. Anything under an experience modification of 100% on your California Workers Compensation will be attractive to Workers Compensation insurance companies while an experience modification factor over 100% while not necessarily bad will cause a surcharge in your rate.
Experience Modifications factors develop over time and are based on the number of years coverage was maintained and the premium level at which it was maintained. It is important to keep your Experience Modification as low as possible. Your agent should be reviewing your claims and following up regularly on the status of any open claims. Prior to your Unit Stat Filing which drives your Experience Modification factor claims should be reviewed and any open claims should be closed or at least your agent should try to reduce reserves on that loss. Your Unit State Filing is done 6 months prior to the effective renewal date of your California Workers Compensation insurance policy. Failure of your agent to follow up on open claims can result in an upward thrust of your Experience Modification factor which can cost thousands of dollars you might not have had to pay.
If your California Workers Compensation insurance premium is very high because of your experience modification factor EZ Center Insurance Services will consider insuring you on a deductible plan. That will reduce your premium while we work on getting claims closed. You should note this is an extreme alternative as there are premium level requirements and excellent financials will be required of you.
West Hollywood Workers Compensation
Almost all insurance agents have access to standard Workers Compensation insurance companies in California. Knowing the right company to turn to is key to getting you the best coverage possible. You want to avoid changing Workers Compensation insurance policies every year to go to the newest California Workers Compensation insurance company. You will find over time that companies providing Workers Compensation insurance jump in and out of California. For this reason changing Workers Compensation insurance companies creates havoc in getting your loss history as most companies want to look back at least five years to see your claims history. They also want to check to make sure you did not leave any audits unpaid. Never leave an audit that generates an additional premium unpaid. If you have an audit dispute get your agent involved, pay the undisputed portion of the audited premium and work with your agent and the insurance company auditor to get it resolved.
One thing that is important to note is that starting your Workers Compensation insurance history is much like building your credit. It can be tough at first but it does get easier as the years go by. Call our office and speak to one of the representatives in our Workers Compensation insurance division to see how we can help you with this mandatory and valuable insurance coverage.