Background
The California Insurance Commissioner, Dave Jones, announced in November that the Workers' Compensation Rates in California would increase by 37% for 2012, according to Work Comp Executive. Many believe that this is completely crazy, because we are coming out of a recession and small businesses are struggling as is. However, the source of this information did point out that there was some number trickery involved which is why it did not make big headlines.
Because Workers' Compensation is mandatory for every employer in California with one or more employee, all employers will suffer because of this. The only exception to this is if the owner is the one employee, then they can exempt themselves from Work Comp Insurance. Failure to have Work Comp for your employees can lead to fines or even jail time.
We have seen this statistic rise over the past two years. Little mom and pop shops are being inspected and the owners arrested for not having Work Comp. Yes. Believe it. I read a news story the other day about how a little old woman who owned a small coffee shop in a small town was arrested for not having Workers' Compensation. You see, it is happening, so why take the chance.
So What Can You Do About It?
So when sales are in the pits, the last thing an employer needs is to hear that their bills are going up. It may feel like the end of the road, but there is an answer. The surprisingly simple solution is to find a good insurance broker who specializes in workers compensation.
A good insurance broker or "agent" will have relationships with many insurance companies and can negotiate better prices. There are many, many major insurance carriers that offer Workers compensation insurance, and a broker who has some time in the field will know which ones are best suited for your business. They will also have the technical knowledge to fix any problems that can result in high insurance premiums.
You can tell if a broker really cares about you as their client, because there are several ways they can to help. Over 70% of experience modifications have errors. A good agent will have carefully reviewed all the items and fixed any errors, making sure you get the best rate possible.
The California Insurance Commissioner, Dave Jones, announced in November that the Workers' Compensation Rates in California would increase by 37% for 2012, according to Work Comp Executive. Many believe that this is completely crazy, because we are coming out of a recession and small businesses are struggling as is. However, the source of this information did point out that there was some number trickery involved which is why it did not make big headlines.
Because Workers' Compensation is mandatory for every employer in California with one or more employee, all employers will suffer because of this. The only exception to this is if the owner is the one employee, then they can exempt themselves from Work Comp Insurance. Failure to have Work Comp for your employees can lead to fines or even jail time.
We have seen this statistic rise over the past two years. Little mom and pop shops are being inspected and the owners arrested for not having Work Comp. Yes. Believe it. I read a news story the other day about how a little old woman who owned a small coffee shop in a small town was arrested for not having Workers' Compensation. You see, it is happening, so why take the chance.
So What Can You Do About It?
So when sales are in the pits, the last thing an employer needs is to hear that their bills are going up. It may feel like the end of the road, but there is an answer. The surprisingly simple solution is to find a good insurance broker who specializes in workers compensation.
A good insurance broker or "agent" will have relationships with many insurance companies and can negotiate better prices. There are many, many major insurance carriers that offer Workers compensation insurance, and a broker who has some time in the field will know which ones are best suited for your business. They will also have the technical knowledge to fix any problems that can result in high insurance premiums.
You can tell if a broker really cares about you as their client, because there are several ways they can to help. Over 70% of experience modifications have errors. A good agent will have carefully reviewed all the items and fixed any errors, making sure you get the best rate possible.
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