Workers compensation insurance coverage for all of your employees is required by law. Not all workers compensation policies are created equally, however, and you’ll want to take some time to review each of them in order to find the right one for your company. Workers compensation can be expensive depending upon the carrier you select, but since the final state passed workers compensation laws in 1949, the regulations have been protecting employees hurt on the job and protecting employers from costly litigation. Here are a few tips that you should keep in mind whenever you begin to shop for workers compensation insurance for your employees.
Begin by assessing how you’ll be paying for workers compensation coverage. Most companies utilize estimated values to find a basic fee. You’ll pay a sizable upfront payment to enact the policy and then dole out workers compensation payments as required by the policy. Paying out workers compensation fees based on estimates can end with you overpaying or paying too little and then owing the workers compensation company a large fee at the end of the year. A better decision is to use a pay as you go workers compensation policy that allows you to pay based on real figures instead of estimates and lacks an upfront payment.
Also take the time to look into the end of the year processes involved with your workers compensation policy. In nearly any standard workers compensation policy you’ll be facing an annual workers compensation audit. This audit will look at a number of things including the number of employees you have on your team, their salaries, your workers compensation payments, and your workers compensation claims. While you could end up getting a refund or owing even more money depending on the results of the audit, the real disadvantage to this method is the stress and drop in productivity caused by the audit. If you can find a workers’ compensation plan that doesn’t involve and audit, that’s a better pick.
Keep in mind also that you need to manage workers compensation throughout the year. Try to find a workers’ compensation policy that will integrate itself somehow into your HR software. By integrating workers compensation into your HRMS you’ll be able to accurately track any data that is applicable to your case and to make any needed adjustments as they occur. Using these workers compensation systems is the best way to ensure that you don’t run afoul of the law or incur any extra fees from your workers compensation provider.
Unicorn HRO provides not only pay as you go workers compensation coverage but also software tools and solutions that can help streamline your managing of workers compensation. To avoid upfront payments and audits, take the time to find a great pay as you go workers compensation package. And to simplify management of your workers compensation, look for policies that will fit into your automated system. These are the only real keys to buying workers compensation coverage for your employees and are the best ways to simplify coverage and save money on it as well.
