Athens, AL, is home to history. With many civil war buildings and monuments preserved, it is a sight to see. If you're one of the 25,616 locals who own a business, you might need workers' compensation coverage.
Fortunately, an independent insurance agent can find a policy that fits your budget. They're able to help your business meet state guidelines for insurance so you're protected. Connect with a local expert to get started.
Who Does Workers' Compensation Cover in Athens, AL?
From liability to commercial auto and everything in between, your business insurance is up for grabs by more people than your staff. 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
You'll need to set certain parameters in place if you don't want 1099 contractors collecting on insurance. By requiring proof of insurance from all non-W-2 workers, you'll solve this problem. A contractor will now have their own insurance to file a claim on instead of yours.
Most Common Workers' Compensation Claims in Alabama
As an employer, you have the ability to make your workplace safer. There have been 643.48 million dollars in workers' compensation benefits paid by Alabama and federal programs. The most common instances reported are due to lacerations and slips and falls. There are many ways to avoid these instances as an employer. 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
What Are the Basics of Workers' Compensation Laws in AL?
For any business to be adequately protected, it'll need the right policies in place. Whether you're part of the 312.01 million benefit dollars paid by self-insuring or have your coverage through a private provider, you'll need to stay covered. To avoid financial devastation and steep penalties, consider workers' compensation insurance.
In Athens, AL, you're required by law to carry workers' compensation insurance. If you have five full or part-time employees, this policy is mandatory. You can get help navigating coverages through a local professional.
What Does Workers' Compensation Cover in Athens, AL?
When one of your employees gets injured or ill on the job, workers' compensation will apply. If you have adequate coverage, you'll have little to no out-of-pocket expense. Check out what a workers' compensation policy can cover:
- Disability insurance
- The death benefit to a surviving family
- Lost wages
- Medical expenses
In Athens, AL, there are specific limits that are required for your workers' compensation policy. Usually, these are minimum limits and aren't enough. When a loss occurs, you'll want to be prepared with the right insurance.
How Much Does Athens, AL, Workers' Compensation Cost?
Workers' compensation insurance is rated a bit differently than your other business policies. They figure your premiums per every $100 in payroll. The lowest base rate in Alabama starts at $0.15 and goes up to $22.80. Check out some items the companies consider when deciding your costs:
- Claims history: The number of claims you file will impact your costs. The frequency and longevity of your claims, the more expensive your costs will be.
- Experience level: The longer you have workers' compensation coverage, the better policy and rates you will get.
- Classification codes: A class code is assigned to each job duty. The more risk involved with your task, the more premiums you'll pay.
Alabama base rate examples
The National Council of Compensation Insurance (NCCI) sets the base cost per classification. Each class code has a base rate range that is used. The carriers then decide which to price to assign within that spectrum. 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
Where Can You Purchase Coverage in Athens, AL?
Just like homeowners insurance, there are several avenues you can use to purchase workers' compensation coverage. In Athens, AL, there are three ways to obtain insurance. Take a look at how to get workers' compensation below:
- Your first option is to purchase workers' compensation through a private market. Local professionals represent these carriers, and they have options on policy and premiums.
- The second option, if you meet specific financial criteria, is to self-insure. This means a group of employers pool their funds to offer coverage to their staff.
- The assigned risk market is the last option you'll have for workers' compensation coverage. A group of companies will write your policy at a higher rate and less insurance. In order to get approved by the assigned risk pool, two private carriers need to deny coverage.
How experience modification rating affects your premium in Alabama
In Alabama, if your workers' compensation premium falls at $10,000 in two years, you'll have an Experience Modification Factor (X-mod). An X-mod lets underwriters know how your loss history is and where it's going. 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.
How an Athens, AL, Independent Agent Can Help
Workers' compensation insurance can be tricky if you're not a licensed professional. When you're trying to DIY coverage, you could be missing key items. Fortunately, an independent insurance agent can help.
They have access to several markets, giving you options on policy and premiums. When you work with an independent agent, they do the shopping for you at zero cost. Connect with a local expert in minutes.
TrustedChoice.com Article | Reviewed by Jeffrey Green
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