Good deal on Worker’s Comp Insurance?

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills
Post Reply
User avatar
Topic Author
FL_TrailRunner
Posts: 25
Joined: Mon Feb 07, 2011 1:02 pm
Location: Clearwater, Florida

Good deal on Worker’s Comp Insurance?

Post by FL_TrailRunner »

I work as the manager of a small business, and I would like to get some feedback from fellow Bogleheads regarding our Worker’s Compensation insurance premium.

It’s renewal time and our premium is $464. The policy is from The Hartford, and they receive our payroll data electronically from the payroll service. The previous 12-month period had about $125,000 in salary paid.

I know the premium isn’t much compared to group life insurance, but just looking to see if we’re getting a good deal.

Thanks for reading!
User avatar
stratton
Posts: 11083
Joined: Sun Mar 04, 2007 5:05 pm
Location: Puget Sound

Post by stratton »

I think this will vary by state. It may vary by profession and maybe even work place safety penalties etc.

Paul
...and then Buffy staked Edward. The end.
grberry
Posts: 234
Joined: Fri Jul 20, 2007 1:16 pm
Location: Boston, MA

Post by grberry »

This should vary a lot by both 1) state due to state law differences and 2) industry due to different risk levels for burger slingers versus truck drivers versus call center reps versus ...
User avatar
Topic Author
FL_TrailRunner
Posts: 25
Joined: Mon Feb 07, 2011 1:02 pm
Location: Clearwater, Florida

Post by FL_TrailRunner »

Thanks stratton and grberry for the replies. That makes sense, which makes the original question probably impossible to answer.

I guess the best way to get comparison numbers is running having a broker get quotes from a number of companies.
User avatar
Quasimodo
Posts: 1357
Joined: Thu May 03, 2007 1:58 pm

Post by Quasimodo »

It's been a long time since I handled Worker's Comp policies, but I believe the rates are going to be the same for the employee classifications on your policy no matter which company you use.

John
Many wealthy people are little more than janitors of their possessions. | | Frank Lloyd Wright, architect (1867-1959)
chaz
Posts: 13604
Joined: Tue Feb 27, 2007 2:44 pm

Post by chaz »

Some states have a state comp fund to compete with private carriers to keep rates in line. If Florida has one, then the state agency would have a lower premium than Hartford.
Chaz | | “Money is better than poverty, if only for financial reasons." Woody Allen | | http://www.bogleheads.org/wiki/index.php/Main_Page
pshonore
Posts: 6883
Joined: Sun Jun 28, 2009 2:21 pm

Post by pshonore »

Most of the state funds exist to provide policies that the normal carriers don't want to write because they're too small or in industries where the rates don't justify the potential loss exposure. Frankly, I'm a little surprised the Hartford would write such a small policy. They're probably losing money on it.
User avatar
V572625694
Posts: 310
Joined: Tue Jun 15, 2010 3:43 pm
Location: San Diego

Post by V572625694 »

pshonore wrote:Most of the state funds exist to provide policies that the normal carriers don't want to write because they're too small or in industries where the rates don't justify the potential loss exposure. Frankly, I'm a little surprised the Hartford would write such a small policy. They're probably losing money on it.
Certainly insurance companies treat small businesses as believe they were doing you a favor to take your money, even though they usually charge a "minimum premium" to get the number up to where its lucrative for them, although I don't think this happens in workmans comp. We used to do ours through the state fund, and then by going through our payroll service wound up with Hartford as well, as they were cheaper, and the payroll service does the computation for you. So it's worth shopping around.
User avatar
Topic Author
FL_TrailRunner
Posts: 25
Joined: Mon Feb 07, 2011 1:02 pm
Location: Clearwater, Florida

Post by FL_TrailRunner »

Thanks everyone for your input.

Payroll service doing the computation is nice benefit. No forms for us to fill out.
Post Reply