For many businesses, Virginia workers compensation rates seem to increase every year. Business owners need to find ways to reduce their expenses, including insurance coverage, in order to stay profitable. Are you wondering what may make your premiums higher? These three factors may be part of why your workers compensation cost more than the average policy.
1. The Size of Your Company
Virginia workers compensation is based on a business’s total payroll. The greater the amount your employees are paid, the higher your rate may be. You can ask your agent to explain how payroll affects insurance rates.
2. Your Line of Work
If your company is in manufacturing or requires manual labor or hazardous conditions, you can expect to pay more for workers compensation. Likewise, if the majority of your task force performs sedentary work in a traditional office setting, you may pay less for your coverage.
3. Previous Claims
Companies with several claims against their policy for accidents or injuries on the job represent a greater risk for the insurance company. If your business has used the policy, you can expect your premiums to be greater.
The good news for businesses is that you may qualify for discounts or credits for your Virginia workers compensation plan. Ask your agent to review your policy and make recommendations to reduce your expenses. You may be surprised at ways you can save your company money on this and other insurance coverage.