Florence, AL, is known as a renaissance city because it holds the annual fair. With over 39,852 residents, this town has ample opportunities for any business. If you're one of the locals who employ staff, you might need workers' compensation coverage.
An independent insurance agent can help you find a policy for an affordable price. Since coverage is state mandated, there are things a professional knows to keep you in compliance. Connect with a local adviser to get started.
Where Can You Purchase Coverage in Florence, AL?
Florence, AL, has a private workers' compensation market. That is usually the first option that most employers choose. You'll have a licensed professional to help guide you through and they can even help with all business insurances.
There are two other options you can select. One is by self-insuring through a group fund. Typically, larger companies take this route to pool their resources and avoid hefty premiums. This will need to be met by specific financial criteria on your end.
The third option is through an assigned risk market. This is usually a last resort because coverage and premium options are sparse. To qualify, you'll need to be denied by two private carriers first.
How experience modification rating affects your premium in Alabama
If your workers' compensation premium is $10,000 in two years, Alabama will assign an Experience Modification Factor (X-mod). An X-mod lets Auburn underwriters know your loss history and gives your business a scorecard. 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?
In Florence, AL, you are required to carry workers' compensation insurance by law. When you have five employees or more, you must get coverage. To avoid financial devastation, consider a policy when you have even one staff member.
Whether you are part of the 312.01 million dollars in benefits paid by self-insurance or have coverage through a private insurer, you'll need protection. If an employee gets injured or ill on your watch, your business is responsible for the damage. A workers' compensation lawsuit could go on for months or even years, get the right policy to be prepared.
What Does Workers' Compensation Cover in Florence, AL?
Workers' compensation coverage can be confusing, and if you're not accurately insured off the bat, it could cost you. When a claim arises, your business will be responsible for any expenses. Check out what a workers' compensation policy can cover.
- Disability insurance
- The death benefit to a surviving family
- Lost wages
- Medical expenses
Since the state mandates that each policy meet specific criteria, you'll need to have at least the minimum limits. Often, the Alabama coverage requirements aren't enough, putting you in a tough spot. To avoid financial ruin, be sure your limits are adequate.
Who Does Workers' Compensation Cover in Florence, AL?
Your workers' compensation, like your general liability, commercial auto, and other business insurance, can be used by an outside source. You may be surprised to know who can collect coverage from your policies. 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 to complete a job for your business, you also lend out your insurance. The only way around not having a 1099 worker file a claim on your policies is to require proof of insurance. If your 1099s have primary insurance, their coverage will pick up a loss when they get injured or ill on your job site.
How Much Does Florence, AL, Workers' Compensation Cost?
Workers' compensation rates per every $100 in payroll. Different than your other business policies like life, health, and liability insurance. Workers' compensation uses a base rate range per job duty. 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 set by the risk level of each operation performed. The more exposure involved with a task, the more premium it will cost.
- Loss history: Your loss history will affect your premiums. The frequency and longevity of your claims, the more expensive your policy is.
- 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 rates per job duty. Each class code has a range that the carriers use to figure your costs. 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
The most common workers' compensation injuries reported are due to lacerations and falls. There have been 643.48 million dollars in benefits paid by state and federal programs in Alabama. As an employer, you can reduce the risk in your facility by taking precautions. Let's 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 safety measures and business policies as a whole
How a Florence, AL, Independent Agent Can Help
Workers' compensation insurance can be confusing if you're not in the industry. To avoid missing mandatory coverages or getting penalized, consult with a professional. An independent insurance agent can help.
They have access to multiple markets, saving time and money. When you're tired of going at it alone, an independent agent does the shopping at zero cost to you. Connect with a local expert to begin.
TrustedChoice.com Article | Reviewed by Jeffrey Green
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