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Workers Compensation 101

August 15, 2019

Workers Compensation 101

If You Have Employees, You Need Workers' Compensation Insurance.

Handling the expense of statutory obligations to employees who are injured or ill due to workplace exposure is challenging for businesses both small and large.

Bay Area Insurance writes Workers' Compensation Insurance for businesses in 36 States. Experience rating will affect almost every business’ premiums.  By having proper procedures and risk management in place, a business can provide a safer environment for employees and control the cost of workers compensation.

Workers Compensation claim

What is Experience Rating?

Experience Mods are generally calculated by NCCI (National /Council on Compensation Insurance) and will be used by all insurance carriers quoting. If you are an employer with better-than-average loss experience, you would receive a credit rating, while those worth worse loss experience would receive a debit rating.

Experience rating presents a refinement in the premium determination process by comparing the industry average experience with an individual employers' own experience. It can benefit or hurt employers by adjusting the premium cost higher or lower.  Experience Mod can also affect a company’s ability to bid jobs and determine whether an insurance company wants to offer a quote.  Mod promulgation looks at a company’s loss history, which is the best indicator of an individual employer’s own potential for incurring future claims.

Don't Hesitate - contact an agent at Bay Area Insurance for a free workers' compensation quote or call us at 410-647-7333 to schedule a consultation today.