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Good deal on Worker’s Comp Insurance?

Posted: Thu Mar 03, 2011 2:22 pm
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!

Posted: Thu Mar 03, 2011 9:45 pm
by stratton
I think this will vary by state. It may vary by profession and maybe even work place safety penalties etc.

Paul

Posted: Thu Mar 03, 2011 10:30 pm
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 ...

Posted: Fri Mar 04, 2011 9:41 am
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.

Posted: Fri Mar 04, 2011 12:53 pm
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

Posted: Fri Mar 04, 2011 1:30 pm
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.

Posted: Fri Mar 04, 2011 4:26 pm
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.

Posted: Fri Mar 04, 2011 6:07 pm
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.

Posted: Fri Mar 04, 2011 7:37 pm
by FL_TrailRunner
Thanks everyone for your input.

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