Workers' CompensationGet your free workers' compensation insurance quote from Insurance Brokers of MN. Call 1-877-323-3314 for more information. We're located in 35 locations across the state of MN to serve you!
Professional Help with Your Workers’ Compensation Plan in Minnesota, Wisconsin, North Dakota and more!
One of the biggest concerns with Minnesota, Wisconsin, Iowa, North and South Dakota businesses today is operating costs. At Insurance Brokers of MN were are licensed and write workers compensation in many states to name a few.
Workers compensation Minnesota, Workers compensation Wisconsin, Workers compensation Iowa, Workers compensation Illinois, Workers compensation Michigan, Workers compensation Arizona, Workers compensation Colorado, Workers compensation Texas, Workers compensation New York, Workers compensation Missouri, Workers compensation Florida. Of course premiums can be a major expense. However, many companies adopt the strategy of accepting bids for their insurance and ultimately go with the lowest price. This can be a huge mistake for a number of reasons that can result in increased experience modification factor which affect your premiums.
To find out more contact one of Insurance Brokers Work Comp Specialist TODAY!
‘Pay-as-You-Go’ Workers’ Comp
Lower Upfront Cost and Competitive Workers’ Comp Insurance Costs
At Insurance Brokers of MN we offer a “Pay-As-You-Go” option for paying for workers’ compensation through many of Work Comp insurance companies. A simple option based on reporting of your actual payroll from the previous month. This practical approach to calculating monthly premiums allows members to pay premiums according to their cash flow. This is making workers’ comp work for you!
What is an EMR Rating?
Experience modifiers (called Emod) are mod rate assigned to a business that will be universally applied to policy pricing regardless of which insurance company quotes the coverage. All new businesses start with an experience modification rate of 1.00 because they have no prior premium or claims to merit an Emod. The factor compares your loss data to other employers in the same class codes, and is expressed as a credit or debit on your policy.
An experience modification is developed and applied to risks with premium large enough for the insured’s past experience to be an indicator of how much benefit, or claims, costs will be paid on behalf of the insured in the future. If an employer’s past experience is better or worse than average, his premium is adjusted downward or upward by the application of the Emod, respectively.
How to Qualify for an Experience Modification Rate?
A business will not have an Emod for the first 1-3 years after it opens. Qualifying for an EMR rating will vary by state, but the overall concept is the same. There are two triggers for qualification:
- Total policy premium exceeds lower threshold for more than three policy periods in Minnesota.
As an example, the state of Minnesota has a three year threshold of $6,000 in premium each year before a business will be assigned and Emod and a Rating Effective Date.
Who Calculates Experience Ratings?
NCCI administers workers’ compensation experience rating for 39 states. All business owners have a right to request their experience modification rate worksheet from NCCI or their state authority. Both Minnesota and Wisconsin administer their own EMR Rating programs along for a number of states.
Minnesota Workers’ Compensation Insurers Association- MWCIA
Wisconsin Compensation Rating Bureau- WCRB
What Affects your EMR Rating?
There are 4 important thing to consider when trying to understand how experience modification factors are influenced:
- Overall cost of losses or claims
- Frequency of losses or claims
- Type of claims, medical or indemnity
Premium is an important factor because it impacts the ratio between expected losses and actual losses sustained during a policy period. Expected losses are the average expectations for the cost of claims during the policy. Ultimately, the goal is to have actual losses come in under expected losses. This will generate a credit modification factor below 1.00. Frequency is also part of the equation because it increases the odds of having an expensive claim.
We help you leverage your EMR Rating to negotiate better premiums quotes with insurance companies.
Let’s take the case of fictional company ABC to demonstrate.
Company ABC was a medium sized electronics manufacturing company with a growing base of customers and recently they expanded into other parts of the Midwest. The President, David G, was very concerned about costs and tried his best to run a lean company. In fact, he had many measures in place to ensure high quality and recently made major changes which greatly increased profits for the previous quarter.
To maintain efficiency, he decided to use the lowest workman’s comp premiums possible. To David, this seemed like the most efficient strategy at the time. However, David made the same mistakes many businesses owners make by assuming the lowest premiums was the most important factor. He failed to realize that he had two employees currently off work and they were preparing lawsuits against the company. This resulted in a lot of unnecessary legal costs, which could have been avoided if his HR director had handled matters differently.
After reaching a settlement with the employees, David met a man at a local donut shop, and they talked about workers’ comp issues. The man was a CWCA (Certified Work Comp Advisor) and showed David all the benefits his program had to offer. David decided to try it and within six months, lost time accidents had dropped off substantially because he now had the benefits of professional help. Let’s talk about workman compensation, what it is and the benefits you can receive from a CWCA at Insurance Brokers of MN.
Meet ICW Group Policyholder: JAC Masonry
What is Workers’ Compensation?
Workman compensation is insurance to compensate employees for time off, due to an on the job injury or job related illness or injury. This insurance is mandatory. The coverage allows for medical care, reimbursement for lost wages, and death benefits.
Who Needs Workers’ Compensation Insurance?
Any business with employees must purchase this coverage or self-insure. This is the law. Even if you only employee one person part-time, you must provide this insurance coverage. Failure to comply can result in major penalties. At Insurance Brokers of MN, Inc. we are licensed to write workers’ compensation for auto service industry, workers compensation for general contractors, carpenters contractors, drywall contractors, electrical contractors, heating & AC contractors, landscaping contractors, plumbing contractors, roofing contractors, workers compensation for hospitality industry, workers compensation for health care industry, workers compensation for the manufacturing industry, workers compensation for the metal fabrication industry, workers compensation for the restaurant industry, workers compensation for the retail industry, workers compensation for the service industry, workers compensation for the trucking industry. At Insurance Brokers of MN, Inc. in many states including Minnesota, Wisconsin, Iowa, Illinois, South Dakota and many more states.
Standard Coverage for Workers’ Comp
Coverage includes hospital and medical bills. It also makes disability payments and may cover expenses like rehabilitation and job training. Death benefits are also provided.
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If you would like more information on Business Risk Management, you can call us at 1-877-323-3314, or fill out the quote form and we’ll contact you.
At Insurance Brokers we work with the # 1 Writer of Work Comp in Minnesota
SFM – Your work comp experts
SFM delivers better outcomes for agents, employers and employees by providing unparalleled expertise in customer service, injury prevention and follow-through. We do this by building a dedicated team that is focused on obtaining long-term positive results for employees and the bottom line.
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New to workers’ comp?
Think you need work comp coverage but don’t know where to start?
You came to the right place. Learn what it is, who needs it, where to buy a policy and more from Workers’ Comp Essentials by SFM®.