If you are looking into purchasing workers’ compensation insurance for your PA business, there’s a good chance that you’ve been looking at multiple different prices and quotes, and you want to get a sense of what everything means. Workers’ compensation insurance has many different factors that go into the cost, but understanding what affects it can help you get the best policy for your business. That’s why we’ve made this guide to help give insight into what affects the cost of PA workers’ comp insurance. Let’s dive in to some of those factors.
Your Industry Can Impact The Cost Of PA Workers’ Compensation Insurance
One of the biggest factors affecting the cost of workers’ compensation insurance is the type of work your employees perform. Each industry or job position comes with its own level of risk, and that level of risk will play a role in how often you might need to use your policy.
If you work in construction, welding, manufacturing, HVAC, or other jobs with lots of risk, your rates are going to be higher. If your employees usually stay at the office, there’s much less risk of injury, and therefore your rates will typically be lower. Insurance companies use job classifications to help determine the level of risk associated with the work your employees perform.
Workers’ Comp Insurance Is Affected By Your Payroll Totals
Your business’s payroll is another important part of calculating workers’ compensation insurance costs. In general, insurance carriers look at how much your business pays employees within each job classification. That means both the size of your workforce and the amount you pay your employees can influence your workers’ compensation premium. As you hire more people and your business grows, there will be more payroll that needs to be insured.
Your Workers’ Compensation Claim History Can Affect Your Rates
The claims on your business from previous workers’ compensation coverage will also be a factor in what you pay. Like other types of business insurance, a history of frequent or costly claims can indicate a higher level of risk to an insurance carrier. Conversely, companies with a good safety record and fewer workplace injuries may be lower risk.
Depending on the business, insurers may also apply an experience modification factor that takes into account past workers’ compensation claims and other information to help evaluate a company’s loss history. That makes workplace safety important for more than just protecting your employees. Proper employee training, equipment maintenance, hazard mitigation, and clear safety procedures can also decrease the chance of workers’ compensation claims, and thus also play a role in potentially lowering your rates
Your Experience And Safety Practices May Also Matter In The Cost Of Worker’s Comp Coverage
Your business’s experience operating safely within your industry can also affect your workers’ comp insurance cost. Established companies with proof of safe operations will appear as much less of a risk to insure than a brand-new business. However, simply being in business for a long time does not automatically mean that your workers’ compensation insurance will cost less. Carriers can consider several factors, including your industry experience, employee training, safety procedures, previous losses, and the overall way your business manages risk. Building good safety practices from the beginning can therefore be valuable whether your company has been operating for two years or twenty years.
Let Strickler Insurance Help You Navigate Your Business’s PA Workers’ Compensation Insurance
There are a lot of factors that can go into a Pennsylvania workers’ compensation insurance quote, which is why prices can vary from one business to another. Even two companies within the same industry may have different payrolls, job classifications, claim histories, and insurance needs.
At Strickler Insurance, we can help you understand those factors and compare workers’ compensation insurance options for your Pennsylvania business. We know that your business is unique, and you need a policy that is tailored to your business’s needs. As an independent agency, we are committed to getting you the best coverage possible.
For workers’ compensation insurance, as well as other business insurance policies like commercial auto insurance, general liability insurance, and more, work with your local Lebanon insurance partner. Get insight into your PA worker’s compensation insurance by contacting Strickler Insurance today.
