Hey there, fellow business owners! Jeremy Ochsner here, from Ochsner Insurance, welcoming you to WCW Blast, where we’re all about bringing value and helping you save on your workers’ compensation insurance. Today, I want to share with you some insider tips that could potentially save you a bundle. So, let’s dive right in!
1. Comp Isn’t Just Comp
You’ve probably heard the saying “comp is comp,” but let’s set the record straight. When it comes to workers’ compensation insurance, there are actually two crucial components: the workers’ comp part and the employers’ liability part. Sure, price matters, but what happens when your employee decides to sue you, the business owner, and your comp carrier has vanished into thin air? It’s the employer liability limits that come into play here, and they could make or break your financial stability. So, before you settle for rock-bottom premiums, consider the long-term reliability of your carrier.
2. Check Your Carrier’s Competitiveness
Not all carriers are created equal. Before you sign on the dotted line, do some digging. Start by asking your employer about the Lost Cost Multiplier (LCM) – the second factor used in calculating your premium. A lower LCM could translate to significant savings. Case in point: we recently audited a policy and found that a mere difference in LCM points could save you thousands of dollars. So, don’t overlook this crucial detail.
3. Understand Your Scorecard
If your annual premium exceeds $5,000, chances are you’ll receive a scorecard, also known as your experience mod. or experience modification factor. This little number reflects your expected losses versus your actual losses over the past three policy periods, serving as an overarching measure of your business’s safety. A scorecard of 1 is average, a “C” but if you’re pushing above a 1, it’s time to buckle down! Not only could a poor scorecard cost you financially, but it could also tarnish your reputation and lead to contractual repercussions. So, keep a close eye on your scorecard and strive for excellence in safety practices.
4. Invest in an Experience Mod Audit
Knowledge is power, especially when it comes to your finances. Consider investing in an experience mod audit to uncover any hidden pitfalls in your policy. Your agent can help you navigate this process, ensuring that you’re getting the best bang for your buck.
In conclusion, don’t let the complexities of workers’ compensation insurance overwhelm you. By understanding the nuances of your policy and staying vigilant, you can save big bucks while keeping your workplace safe and secure. Here’s to your success and prosperity!
Thank you for tuning in to WCW Blast Volume 1. If you found these tips helpful, be sure to leave us a comment and share your feedback. Together, let’s pave the way for a brighter, more prosperous future for your business.