Construction Workers Compensation is an essential component to protect your employees and your business. As this coverage is required, premium rates can cost a pretty penny. However, experience modification factors exist to remedy the financial obligations of some businesses. Understanding these regulations and following a few guidelines can help to lower your annual premiums.
According to New York State Workers’ Compensation Board, an experience modification factor adjusts an employer’s premium to reflect the difference between the employer’s loss experience and the average experience that is expected for its classification(s) size. These modification factors, developed by the Compensation Insurance Rating Board (CIRB), apply to companies whose annual premiums are $5,000 or more.
In addition, the rating system favors infrequency of accidents and less severe instances to qualify companies for lesser payments. Further, if a company experiences less loss than anticipated, they may receive a premium credit. Conversely, if the loss and injury experience is more than originally anticipated, the company will be tacked with a premium debt.
In order to reduce these risks, experts recommend the following guidelines:
- Enforce workplace safety.
- Maintain a clean work environment.
- Inspect machinery regularly.
- Uphold a drug and alcohol free workplace.
- Consult with your insurance company’s loss control department to obtain expert safety and preventative advice.
- Post industry publications from the U.S. Occupational Safety and Health Administration to remind employees of proper safety practices.
At Tri-State Insurance Agency, we specialize in insuring the construction industry. Our broad coverage options can be customized to be tailored to your specific coverage limits. For more information on our products and service, give us a call today at (888) 990-0526.