Workers Comp Insurance - How to Get the Best Rate

Workers comp insurance costs of premiums is normally one of the largest expenses for a small business. If your business is in one of the industries that typically has subcontractors that do part or most of your work, paying attention to getting workers compensation certificates of insurance is of the utmost importance. Requiring a comp insurance waiver from all of your subs can substantially reduce your cost of workers compensation insurance.

If you fail to get and have on file certificates of insurance for workers compensation for your subs the insurance company will bill you premiums for all those subs as if they were in actuality your employee even though they are subcontractors. Many a small business owner has been hit at the end of the year with large audits for failure to have on file certificates of insurance for all the subcontractors that they utilize. One of the easiest and best ways to get the best rate is to pass on the exposure and the corresponding premiums to your subs.

Employers workers compensation insurance is a specialty niche and normally it is in your best interest to utilize workers compensation companies that specialize in writing only comp insurance. These companies normally have low overhead costs and streamline operations and thus they can pass the savings on to you as a client. Workers compensation companies that also write auto insurance, homeowners insurance, and other lines of business insurance, typically have higher overhead cost and thus their workers compensation premiums tend to be higher.

Using these two cost saving ideas can enhance your cash flow for your small business over time.