Enterprise, AL, has a strong history of growth.With its friendly community and love of history, Enterprise is a great place to live. Diverse occupations are plentiful in this 28,247 resident town.
If you own a business here, you may be required to have workers' compensation coverage. An independent insurance agent can help find a policy that complies with state law. Connect with a local expert to begin.
What Does Workers' Compensation Cover in Enterprise, AL?
A workers' compensation claim can cover a variety of losses. It will depend on how much damage is done and how extensive the injury or illness is. Check out what a workers' compensation policy can cover.
- Disability insurance
- The death benefit to a surviving family
- Lost wages
- Medical expenses
When an employee gets hurt on the job, your company will be responsible for the expense. Without the right workers' compensation policy, you could be on the way to financial distress. Consider increasing state minimum limits to avoid paying out of pocket.
Who Does Workers' Compensation Cover in Enterprise, AL?
Your business policies will cover more people than you may think. In addition to workers' compensation, your commercial auto and liability policies could be accessed by a claimant. 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
When you hire a 1099 contractor without insurance, you could be at risk. Any worker who gets hurt on the jobsite can file a claim on your policies. To avoid a financial battle, require proof of insurance from all 1099 contractors.
What Are the Basics of Workers' Compensation Laws in AL?
In Enterprise, AL, workers' compensation is required by law. When you have five or more employees, you must have coverage. There are specific guidelines you'll need to follow as well.
Even though workers' compensation insurance isn't mandatory until you have five employees, you might want to look into it sooner. If a staff member gets injured or ill at the job, you'll be responsible. Months and years of medical expenses and lost wages could put you out of business.
How Much Does Enterprise, AL, Workers' Compensation Cost?
Your workers' compensation policy will rate per every $100 in payroll. Unlike your other business insurances, it is based on assigned rates. Where your costs fall within the base rate range will be at the carrier's discretion. Alabama's lowest base rate starts at $0.15 for the least risky task and goes up to $22.80. Check out some items the companies consider when deciding your costs.
- Classification codes: These are assigned per job type. The more risk involved with your task, the more premiums you'll pay.
- Loss history: Your loss history will affect your premiums. The more claims and the longer they are open will impact your costs.
- 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 rate per job classification. The less risk involved in your operation, the lower you'll pay in premium. 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 Enterprise, AL?
In Enterprise, AL, you'll have three choices when it comes to workers' compensation coverage. Like your homeowners policy, there are several ways you can purchase insurance. Let's look at the options below:
- Option one: Alabama has a private workers' compensation market. Numerous licensed agents can sell within these private markets. You'll get the lowest premiums and most carrier options.
- Option two: In Alabama, you can self-insure through a group fund. By group self-insuring, it means you meet specific financial criteria. You'll then be allowed to pool your resources with other employers to offer workers' compensation.
- Option three: If your company doesn't have the experience needed, you'll have to try your chance at the assigned risk market. When two or more standard carriers have denied you coverage, you can apply.
How experience modification rating affects your premium in Alabama
When your workers' compensation premium is $10,000 in two years, you'll have an Experience Modification Factor (X-mod). An X-mod lets Alabama underwriters know your losses and forecasts future claims. 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.
Most Common Workers' Compensation Claims in Alabama
In Alabama, there were 643.48 million dollars in workers' compensation benefits paid. The most common injuries are due to lacerations and falls. You can avoid these occurrences as an employer by being proactive. 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 safety measures and business policies
How an Enterprise, AL, Independent Agent Can Help
Your workers' compensation coverage is important. Not only is it state-mandated, but it will protect your bottom line and employees. To get the right insurance for an affordable price, consult with an adviser.
An independent insurance agent has options on policy and premiums. When you're tired of DIY insurance, get a professional. Connect with a local expert on TrustedChoice.com to get started.
TrustedChoice.com Article | Reviewed by Jeffrey Green
©2020, Consumer Agent Portal, LLC. All rights reserved.