Alabaster, AL, is known for its wildlife and outdoor facilities. Home to national parks and hiking trails, this town is full of recreation. Alabaster has over 33,202 residents, making it a mid-sized place to own a business.
If you're an employer, then you'll need to know about workers' compensation insurance. An independent insurance agent can help find a policy that complies with state law. Connect with a local adviser to get started.
Where Can You Purchase Coverage in Alabaster, AL?
Like life insurance, you'll have different options when it comes to coverage. There are three ways to get workers' compensation insurance in Alabama. Alabaster has a private workers' compensation market. Several agents are approved to sell within these private markets.
Two other options for your business is through a group self-insurance fund or the assigned risk pool. By group self-insuring, you'll be allowed to couple your resources with a group of employers to offer Alabama workers' compensation. There are specific financial criteria that must be met to qualify.
If your company is without experience, the assigned risk market is the way to go. When two standard carriers have denied insurance, you'll be eligible for the assigned risk pool. Coverage is usually more expensive, but it will meet state guidelines.
How experience modification rating affects your premium in Alabama
When your Alabaster workers' compensation premium is $10,000 in two years, you'll have an Experience Modification Factor (X-mod). An X-mod is like a scorecard for your business. It shows the underwriters how often you file claims and when. It works like this:
- When you have an X-mod of 1.0, it doesn't affect your premium. Every employer will start with a 1.0 X-mod, and it's the baseline.
- When you have an X-mod greater than 1.0, it is considered a debit mod. That means you had losses, and your premiums will increase.
- When you have an X-mod less than 1.0, it is the credit mod. This is the best spot because your loss history was better than expected, and you get lower premiums because of it.
What Are the Basics of Workers' Compensation Laws in AL?
Workers' compensation insurance will protect your finances and employees when a loss occurs. Coverage applies when a staff member gets injured or ill while on the job. If you're without this policy, you could be at risk.
Not only is the coverage required by law, but it will help your company avoid financial ruin. In Alabaster, AL, you must carry workers' compensation when you have five employees or more. To stay within mandatory guidelines, consult with a professional.
What Does Workers' Compensation Cover in Alabaster, AL?
Your business needs protection when you have employees. When an injury occurs, you'll want insurance to pick up the expense. Check out what a workers' compensation policy can cover:
- Disability insurance
- The death benefit to a surviving family
- Lost wages
- Medical expenses
The average worker in Alabaster makes $74,347 in annual income. If you have an employee out due to a work-related injury or illness, you'll be responsible. Lost wages and medical expenses can add up fast.
Who Does Workers' Compensation Cover in Alabaster, AL?
Anyone your business uses to handle a job could file a claim against your insurance. Not just workers' compensation, but general liability, commercial auto, umbrella insurance, and more. Take a look at some of the people your workers' compensation policy can insure:
- W-2 employees
- Non-exempt owners, partners, members, and officers
- 1099 contractors
If you want to avoid a 1099 contractor filing a loss on your policy, you need to take measures by making it mandatory for all 1099 contractors to carry insurance greater than or equal to yours. Their coverage will take the front seat in a claim. When a contractor gets injured or ill on your job, their insurance picks up the bill.
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How Much Does Alabaster, AL, Workers' Compensation Cost?
Different from your other business policies, workers' compensation charges per every $100 in payroll. Each job duty will have a range assigned that the insurance companies stay within. Alabama's lowest base rate starts at $0.15 for the least risky job and goes up to $22.80. Check out some items the companies consider when deciding your costs:
- Experience level: The longer you have workers' compensation coverage, the better policy and rates you will get.
- Loss history: Your loss history will affect your premiums. The number of claims filed and the length they are open will determine your costs.
- Classification codes: These are determined by how risky each job duty is. The greater the exposure, the higher the premium.
Alabama base rate examples
The National Council of Compensation Insurance (NCCI) sets the base price per job classification. Every class will have a low and high end. The carriers will rate your policy accordingly. Check out some examples of base rate ranges per $100 of employer payroll:
- 8742 Sales professional - $0.25 low rate / $0.62 high rate
- 8810 Clerical-office employees - $0.15 low rate / $0.27 high rate
- 5022 Masonry construction - $5.17 low rate / $12.79 high rate
- 5102 Door and window installers - $3.58 low rate / $8.85 high rate
- 5183 Plumbing contractors - $2.04 low rate / $5.04 high rate
- 5190 Electrical work-electrician - $2.18 low rate / $5.39 high rate
Most Common Workers' Compensation Claims in Alabama
For workers' compensation, the most common injuries reported are due to lacerations and slips and falls. With 643.48 million dollars in benefits paid by Alabama and federal programs, there's a lot that could go wrong. In order to to avoid losses, your workplace can take extra precautions. Take a look at the top items that will help reduce injury or illness on the job site.
- Hold regular safety meetings with staff
- Assign a safety officer to keep guidelines monitored and abided by
- Be proactive in workplace safety measures to avoid injury or illness
- Have posted safety protocols for all to see and follow
- Have a risk consultant review your business policies and safety measures for accuracy
How an Alabaster, AL, Independent Agent Can Help
When you have the wrong coverage, you could face penalties and even back taxes. Workers' compensation insurance can be tricky to follow if you're not an expert. Fortunately, an independent insurance agent can help with policy and premiums.
Since they work on your behalf at no cost, you'll save time. If you're tired of trying to do it on your own, find an adviser. TrustedChoice.com can connect you with a professional in minutes.