Virginia requires workers’ comp insurance for any business with employees. Knowing what elements make up the premium costs of your insurance can help you understand what you can do to maintain workers’ comp insurance and keep it affordable. There are three key factors that determine how much your business will pay for workers’ comp insurance:
1. The type of business
Some businesses just have a higher risk of accidents, such as construction or mining. However, you can manage costs by making sure you classify your employees correctly. Office workers face a lower risk of injury.
2. Your accident history
Your insurance provider is going to look at how many accidents your business has had compared to other businesses in your industry. Keeping accidents lower than the industry average can help you manage your premiums. An ounce of prevention is worth a pound of cure.
3. Your payroll
The philosophy is that the higher your payroll, the more risk your business has. The more employees you have, the greater chance that one might be injured.
You can’t control your industry risks, but you can put in policies and procedures to keep employees safe. Do your part to keep work accidents low and work with the insurance company to manage the costs of your Virginia workers’ comp insurance premiums.