Workers compensation is a need for any company that has W2 employees.  It is a policy to protect your employees if they are injured on the job.  The pricing on a workers compensation policy can be confusing at first, but it’s really pretty simple when it is explained.

There is your payroll, your industry rate, and two options to earn discounts or surcharges.  The first is called an experience mod.  In the simplest terms, you can earn discounts if you don’t file many or any claims.

The second is called a schedule mod.  This is the only opportunity the insurance company has to influence the rate.  If they think you are run a safe business, they can drop your rate. They can also raise it if they think you are a higher than average risk.

There is a also a discount in some states called the drug and alcohol credit.  If you have a written drug and alcohol policy stating the consequences to showing up to work drunk or high, you can get a discount on your WC premium.

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