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Where you buy Workers' Comp can make a difference

Jan 16 2015

Michael Murphy  President

Workers’ Comp rates can vary between insurance providers.

Where you get your Workers’ Comp Insurance can make a difference.  While classification rates are set by the Commonwealth, individual insurance companies may modify/decrease rates for certain job classification.  This can result in savings for your business. Beyond the possibility of discounts from some carriers, be sure that you have confidence that your Workers' Comp provider is paying attention to all the details of coverage because issues with proper job classifications and reporting of salaries can have a significant impact.  The last thing any business needs is a surprise at the time of an audit.

Here are other a few other tips on managing costs.

Something that separates us from other providers is the care we take in helping our customers.  Paying attention to the details can save you time and money.

Proper classification codes.  If your business operation changes and what you (or your people) do is different, be sure to let us know. Decisions to outsource portions of your operation or modify the products/services you offer could change the risk associated with certain jobs at your company.  This can impact classification codes and applicable rates.

Track overtime separately.  Make sure that overtime is tracked separately from straight time since OT should only be counted at the flat rate, not time and a half.  If you blend the two, it inflates estimates and requires extra work to fix in an audit.

Apply allowed salary caps.  Do not exceed the allowed salary caps of $52,000 for each corporate officer or $44,200 for each partner or a sole proprietor.

Elect vs. Not elect coverage.  If you are a sole proprietor or partner, Massachusetts law allows you to either elect or not elect workers’ comp coverage for yourself.  While not electing coverage can save you money, it also means that anyone that hires you as a subcontractor would have to pay for your personal workers’ comp expense.  While some companies are willing to absorb this cost, many are not.  Remember that not electing coverage could result in you not getting some jobs.

If you have questions about Workers' Comp or want to review your current policy, we're glad to go over it with you.

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