As an employer, we understand that your employee’s safety is vital to the success of your company. Workers compensation coverage for labor-intensive businesses can easily equate to over 50% of the total insurance premium and is usually the most difficult policy to properly manage. The key to a successful Insurance program is an aggressive preventative program that greatly reduces claims in particulate Workers Comp Claims. You need a partner who fully understands how to navigate Workers Compensation and has a proven track record in helping you develop and then manage this program.
Workers’ Compensation Insurance
Get Your Free Quote
Get the coverage you need for your Home, Business, Farm, Life and more. Let us complete a full policy review and prepare a quote for you Today!
What is workers' compensation insurance?
If you have employees, Workers’ compensation insurance is mandatory in Connecticut, as well as, the other 49 states. Each state manages it’s own Worker Compensation Fund through the Connecticut Department of Insurance. It is a contract between your company and your insurance company in which the insurer agrees to pay for lost wages, medical costs, temporary disability, permanent disability, or death benefits that result from workplace injuries or illnesses. In most cases, having workers’ compensation insurance also protects your business from being sued by injured employees.
The Various Aspects of Workers Compensation:
A workers compensation policy has two parts namely the state fund and the employer’s liability. The first part most employees are familiar with. It is the state fund portion. The majority of claims are recorded in this part. The policy works like the old game show “Let’s Make a Deal”. In theory, the employee can choose either door and once a door is chosen, the other door is no longer an option. Said another way if the employer chooses the state pool, generally the employer liability part of the policy is no longer exposed to a claim unless the employee decides to pay back all of the expenses incurred in order to sue the employer liability portion. The majority of claims are settled in the State Fund.
Class Code Rates: Every job in the United States has a specific class code as determined by NCCI the national independent clearinghouse for all insurance carriers. Each year they record all workers comp claims across the State and determine the base rate the coming year. The Insurance Carriers then make a calculation called the loss cost multiplier based on their loss trend over the given year and they file that with the CT Department of insurance for approval. Each insurance carrier has a set filing date with the state and once approved the new rates are activated. Generally, all rates will average out the same over time.
Modification Factor: If an employee has a workers Compensation premium of approximately $6,000, NCCI assigns the employer a Modification Factor (also known as MOD) based off of their loss history. They measure two points, the number of claims and the size of the claims. The MOD period is based on a three-year window excluding the recent year. Said differently the period used is the oldest three years from the past four years. The calculation is a factor based off previous premiums and claims in order to balance the equation to neutral or 1. Said a different way, 1 is what your rate would be without a MOD. The MOD can range from +2 to approximately .5. A MOD of 2 will double your premium, likewise, a MOD of .5 will half your premium. You need to monitor your MOD and we are here to help manage it. With a strong loss prevention program, you can steadily reduce your MOD and keep your Insurance premiums relatively flat or declining. That is our Goal with every one of our clients with a MOD factor.
What workers' compensation covers
Workers’ compensation insurance covers most injuries that arise out of work-related activities, including everything from accidents at work to repetitive stress injuries. Workers’ compensation insurance also provides coverage for work-related illnesses or diseases. Coverage for your employees will typically include the following:
- Rehabilitation costs and medical bills
- Weekly payments to replace lost wages
- Temporary or permanent disability payments
- Death benefits for the family if an employee dies
- Funeral and burial costs
- Legal fees
Be Sure With Lyman Insure
At The Lyman Agency, LLC., we understand that your business is unique. You want an insurance agency that is familiar with the business to ensure you have the complete coverage you need.
Lyman Insure™ has the experience that business owners need to protect all aspects of their business. At The Lyman Agency, LLC., we recognize that it is the relationships we establish with our clients that set us apart. Please contact us for a free quote or insurance evaluation. You can be sure with Lyman Insure.