Auburn Workers Compensation

Your Complete Guide to Auburn, AL, Workers' Compensation

How to find a local expert in minutes

Alabama Workers Compensation

Auburn, AL, is a college town. It is ranked in the top ten best places to live, putting it on the map. With over 63,973 residents and home to Auburn University, your business will have a lot of opportunity for growth. 

If you employ any staff, you may be required to carry workers' compensation coverage. Fortunately, an independent insurance agent can help with a policy that fits your budget. Connect with a local expert in minutes. 

What Are the Basics of Workers' Compensation Laws in AL?

If you self-insure and are part of the 312.01 million dollars in benefits paid or have your coverage through a local provider, protection is necessary. If an employee gets injured or ill due to doing their job, your business is on the hook. That could be thousands of dollars in expenses.

In Auburn, AL, you are mandated to have workers' compensation insurance. Every business owner with fiver or more employees must carry coverage. A policy that complies with state guidelines can be found in multiple ways.

Where Can You Purchase Coverage in Auburn, AL?

In Auburn, AL, you can purchase coverage one of three ways. Similar to other business policies like life, general liability, and more, you'll have a choice. Take a look at your options regarding workers' compensation insurance: 

  • You can purchase workers' compensation through a private market. Local professionals represent these carriers, and they have options on policy and premiums. 
  • If you meet specific financial criteria, you can self insure. This means a group of employers pool their funds to offer coverage to their staff.
  • The last resort is through the assigned risk market. This group of companies will write your workers' compensation policy with a higher rate and usually lower coverage. It can only be utilized when two other private carriers have denied you.

How experience modification rating affects your premium in Alabama

In Auburn, AL, if your workers' compensation premium is $10,000 for each of two years, you'll have an Experience Modification Factor (X-mod). An X-mod will show underwriters how often you file claims and what the industry is doing as a whole. 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 Does Workers' Compensation Cover in Auburn, AL?

A workers' compensation loss can drag on for months and even years. To avoid financial ruin, consider a policy that has sufficient limits for all your exposures. Check out what a workers' compensation policy can cover:

Auburn requires certain limits of workers' compensation coverage. While you're not mandated to go above the minimum, you may want to. Usually state minimum limits are too low for most businesses and could be inadequate insurance. 

Who Does Workers' Compensation Cover in Auburn, AL?

Your workers' compensation, commercial auto, and liability policies will cover more than you think. Anyone who does a job for your business could file a claim on your insurance. 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 do not require proof of insurance from your 1099 contractors, you could be liable. When a 1099 worker gets injured or ill on your jobsite without their own insurance, your coverage will be responsible. Consider acquiring a new standard and mandate insurance from all non-W-2 employees.

How Much Does Auburn, AL, Workers' Compensation Cost?

Business insurance is all handled a bit differently from coverage to coverage. A workers' compensation policy rates per every $100 in payroll. Your Auburn premiums will depend on how risky your job duties are to perform. 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.

  • Classification codes: These are determined by how dangerous your job duty is. The more risk involved with your task, the more premiums you'll pay.
  • Loss history: Your loss history will affect your premiums. 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. 

Alabama base rate examples

The National Council of Compensation Insurance (NCCI) sets the base price per classification. Each class code is assigned a high and low rate. The carriers then decide where you fall 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

Most Common Workers' Compensation Claims in Alabama

With 643.48 million dollars in workers' compensation benefits paid by Alabama and federal programs, coverage needs to be accurate. Among the most common injuries reported are lacerations and slips and falls. There are many ways you can make your workplace safer as an employer. Take a look at the top items that will help reduce injury or illness on the jobsite:

  • 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

How an Auburn, AL, Independent Agent Can Help 

If you're searching for compliant workers' compensation coverage in Auburn, AL, an independent insurance agent can help. They work with several carriers and will have options on policy and price. Since an agent is well versed in local insurance laws, you'll have an asset in your corner. 

An independent agent will work on your behalf at no cost, saving you time and money. Get connected with an expert on TrustedChoice.com.

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TrustedChoice.com Article | Reviewed by Jeffrey Green

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