How Work Comp Insurance Determined?

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Workers Compensation Insurance has a policy rating platform that actually makes sense.  Work Comp Insurance is primarily based on two things; the amount of employee payroll that your business has and the type of work that your business does. Each job operation is given a rating factor to charge for your work comp insurance that is determined by the insurance company.  For Workers Compensation Insurance, the pricing is determined by a price for every $100 in payroll. Plumbing Insurance for the state of Minnesota is $4.35 per every $100 in payroll.  Work Comp Insurance Companies charge the rating that they see fit. In most cases, the Insurance Company rating is less than the Minnesota Work Comp rating.

Minnesota Workers Compensation Insurance Companies have the ability to offer discounts off of their insurance policy rating.  The insurance company has the ability to review previous loss history and review the Business applying for insurance and offer discounts off of the prime insurance rate.  These discounts could be anywhere from 5 to 40%. It helps to work with an experienced insurance agent for your work comp policy. An experience insurance agent will know how to leverage the potential available discount for a business and apply the experience modification factor.

An established business may have an Experience Modification Factor. A modification factor is primarily based on previous claim experience. This is set by the Minnesota Workers Compensation Association. You must pay a minimum amount in insurance premium before you can qualify for a Mod Factor. Generally, $5000 in Premium is the minimum amount you must pay annually to be assigned a Modification Factor. If you have relatively few claims in the last 5 years, you may have a credited Mod Factor, where you may receive an additional discount off of your Work Comp Policy.  If you have had claims, more specifically larger claims, you may have a debited Mod Factor and you will be automatically charged more for your policy.   

The deep discounting of your work comp policy and the application of the Experience Modification Factor are the two weapons that can be used to save on your workers compensation insurance policy. Often times the Experience Mod factor is not used on your work comp policy. It should be. You can save hundreds, possibly thousands with this mod factor. Working with Insurance Companies that want to write Work Comp Insurance helps greatly to get the best possible pricing on your workers compensation. Working with an Insurance Agent and a company that wants Work Comp Insurance is he best way to save with our workers comp. We work with many insurance companies that are willing to discount your insurance policy.

For More Information or a Quote on Minnesota Workers Compensation Insurance, please contact us at (763)767-0522 or fill out the short contact form below and I will reach out to you personally.

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