“The size of your payroll, location, and business’ past history of work-related claims may all impact your policy premium.”Most status require workers’ compensation coverage the moment you hire your first employee, so purchasing workers’ comp insureance is something nearly all businesses will require.
So how are workers’ comp premiums calculated?
At Cerity, the size of your payroll, location, and business’ past history of work-related claims may all impect your policy premium.
Companies are placed in groups or classifications with other companies that do similar things and therefor have similar operations and risk. Each group or classification is associated with ‘base rate’ which serves as a starting point for calculating premium. From there, adjustment – both positive and negative – are made based on those various factors.