Worker's Compensation


Worker’s compensation insurance provides protection for both the employee and employer and brings stability to the workplace.  The purpose of workers’ compensation insurance is to provide employees with proper compensation for job-related injuries or illnesses. Although specific laws vary by state, workers’ compensation insurance is generally required of companies with W-2 employees.

Many states use the standards of the National Council of Compensation Insurance to determine the rates of their workers’ compensation insurance. The NCCI, a non-governmental, private organization, uses classifications to determine the risk factors involved in particular jobs. The risk factor will obviously be greater with occupations such as mining and construction, and generally low for clerical workers.

Premiums are usually determined through a formula which includes a number of factors including salary, bonuses and other variables.  A remuneration number is then determined and is used in conjunction with the risk factor classification of the job to arrive at the cost of the insurance. Premiums can also be adjusted by “experience modification factors”, which are standards set by the NCCI and other organizations for reducing premiums based on a company’s loss history.

The initial premiums are based on a number of estimates including the amount of wages to be paid to workers.  At the end of the policy period an audit is performed to determine the actual premium amount.  The results of the audit can result in either a refund or additional premiums due.

Our team of professionals are highly experienced and knowledgeable in helping you develop a cost effective worker’s compensation strategy.