How to Get Workers’ Compensation Insurance Quotes

So you’re probably looking for workers’ compensation insurance for your business, and you may already be confused by what is the right choice or best route to go for getting a quote.

Let’s start with some of the basics, like:

What is Workers’ Compensation Insurance?

Workers compensation insurance, often just called workers comp, is a mandatory form of insurance when an employer has employees.

The rules of who must carry workers comp vary from state to state, but in most cases, if you have employees, you need this coverage.

The intent of workers comp is to pay for the medical bills and other costs when an employee is injured or becomes ill on the job and pay a portion of lost wages for injured workers during rehabilitation.

I did a detailed video on how workers comp works that you can view here: How does Workers’ Compensation work?

How are Quote for Workers’ Compensation Insurance Premiums Calculated?

Two main elements factor into the pricing or rating workers compensation insurance: payroll and class code rates.

The classification codes used on your policy identify the work your company does and in some cases what specific groups of employees do – I explain the entire classification code structure in this video, if you’re interested: Workers Comp Class Codes, What Are They For? 2023

In a nutshell, the class code will identify the rate for that group of employees, which is then multiplied by the payroll for that group of employees.

The rates for a code differ from insurer to insurer. A single insurance company can have a dozen or more variations of a class code rate depending on the underwriting characteristics of a particular client.

Finally, other factors like the employer’s experience modifier and state surcharges are applied to the premium developed. I recently did another video on the workers’ comp experience mod, often called the e-mod that you can view here: Workers Comp ERM or E-Mod Explained

How much do small businesses pay for workers’ comp insurance?

That’s a good question, and the answer is – it depends.

Yeah, I know you’d like to know what it’s going to cost, and you’ll find a lot of big-name websites that will tell you that the average premium is like $45 a month or the median price is only $60 a month, and so forth.

What do those numbers mean?

They don’t mean anything – Those figures are worthless, in my opinion.

There are over 800 classification codes, each with its own rates.

There are dozens of A-rated insurers selling workers comp, and as i mentioned, many of them may have a dozen variations of rates and on top of that there are 46 different state rate filings.

There are 46 because four states are known as monopolistic, and the state issues workers comp coverage, not insurance companies.

On top of all that, how many employees or payrolls are represented by that average or median number?

If you’re looking for an idea of what workers comp will cost you, that average or median price you see online is really worthless. It has no meaning.

This probably leads to the next question….

So, how do you get the best price on workers’ compensation insurance?

In my opinion, that starts with working with a skilled insurance broker who knows workers comp inside and out and represents the top insurers.

If you do a Google Search for workers comp quotes, you’re probably going to see in your search results from big insurers like Hartford, Geico, Hiscox, Progressive, Nationwide, Liberty Mutual, and more.

If you contact them, you’ll probably get one quote – that particular insurer’s quote.

So now you’ve got to go through this process repeatedly to find the best deal.

The solution is to work with a skilled broker, like The Coyle Group, who can sort through dozens of options for you and then be there by your side for other forms of insurance you’ll need and as you grow.

Look, you’re probably not a giant corporation, why buy insurance direct from one when you can get the advice, guidance, choice and selection from an entrepreneur like you.

Do you want to deal with a big call center and talk to someone different every time you call, or do you want a relationship with someone who cares about you and your business?

Payroll Providers – Is this the best choice for my workers’ comp?

That’s a good question. For many startups, the decisions on many things are focused on convenience, so they bundle their workers’ comp with their payroll.

Is this a good thing?

It can be, but often, there are additional fees for that convenience.

On top of that, in my experience, most payroll providers only represent 2 or 3 insurers, so you may not get the best deal.

That’s why working with a good broker makes more sense.

And, when it comes to the convenience of pay-as-you-go or monthly installments, most insurers can accommodate your cash flow needs.

Bottom Line

When it comes to workers’ compensation premiums and getting a good deal.

You can go to any number of companies that sell workers’ compensation insurance online and get one quote – their quote.

Or you can speak to me, and I can go to dozens of those same insurers and others to get several quotes, make sure the coverage is correct, and give you my 40+ years of experience to help you make the right decision.

If you’re looking to work with a team of dedicated experts on your worker’s comp and other business insurance policies, I’d love to speak with you and see if we’re a good fit for you and your business.

Thanks!