Many business owners believe that when it comes to workers’ compensation rates, they are the same.

They also believe going from one agent to another, will do nothing to reduce their costs.

While it is true that the state of New Jersey sets the base rates for workers’ compensation, carriers can discount and give credits.

Insurance carriers have tools at their disposal to reduce your final premium.

Watch the video below from Greg and continue reading to learn about ways you can save on workers’ comp costs.

Premium Discount Tables Schedule Y and X

Depending on the insurance companies filing, you may be eligible for a straight discount.

Scheduled Credits

Depending on the industry, years in business, annual premium size, and your claims experience. Discounts can range from 5% all they way up to 30% in some cases. Beware though, if you have had a frequency of claims, they can also apply a surcharge.

Voluntary Insurance Market

Sometimes, because your agent doesn’t have access to a voluntary workers compensation carrier, , if that’s the case, or forgets to get you out of the state pool at renewal they opt to place you in the State Pool. Just by being in the state pool you can be surcharged up to 35%. Just by finding you a insurance company in the voluntary market, you can save a significant amount on your premium.

Managed Care Program

By opting to use the medical services that are part of a preferred network of an insurance company, you can save up to 20% more.

Dividend Programs

If enrolled in a dividend program, you may be eligible to receive money back at the end of the year. Carriers pay you if the industry class has very few claims. This can be as little as 5% or up to 30%.

Construction Credits

If you are a contractor, you may be eligible for a significant credit. If your average hourly wage is more than $24 per hour excluding overtime, you can receive a minimum or 5% all the way up to 25% credit applied against your premium.

Incorrect Experience Modification Factor

Yes, even the insurance carriers make mistakes. Depending on the size of your workers compensation premium, we have services that will scour your insurance records looking for mistakes. We can go back as far as 7 years to make sure your modification factor is the correct one. Believe it or not over 25% of the Experience modifications are wrong. If we catch it, we can request that the over charged premium be returned to you and going forward, your modification be reduced. We will then monitor your account to make sure it remains correct.

Special Plans

There are plans for US Longshore Harbor Workers (USLH) coverage. We can eliminate audits and offer safety training to help you mitigate any frequency or severity of claims to help you control your workers compensation cost.

Minimum Premium, Deductible Insurance Programs and Retrospective Insurance Plans

These are designed for clients who are paying more than $1,000,000 in annual premiums. These give you control. However, it will require that you maintain very exact books and most likely assign one of your employees to monitor the program.

Pay as you Go

If you are tired of annually collecting all the records and going through the painful process of an audit, we have a better way. Pay your premiums simultaneously as you make your payroll deposits. Eliminating the need for the painful process.

So, if you think you cannot do anything about the soaring cost or painful audit process of your workers’ compensation policy, it’s time to think again. While you’re at it, we can also review your liability, auto, umbrella and equipment employee benefit programs cost. Give us a call – we’re sure our agency can find a better solution for you.