Shopping for workers' compensation takes more than research. It also takes some preparation on the part of the business owner. When it comes to these policies, the more information you can provide the insurance company — the more accurate the quote and more customized the policy. To help ensure your business's needs are matched, learn what important information you need to collect before you begin searching for quotes.
1. Business Structure
If you operate a small business, the insurance company will want to know the legal structure of the company, such as is it a limited liability company, sole proprietorship, etc. This distinction is important as different business structures have different obligations in terms of who they have to offer workers' compensation insurance to, if at all. You should already know this information, but just make sure you are ready to present it when asked by an agent.
2. Inspection Reports
It is not unheard for an insurance company to ask for a copy of your most recent inspection reports. The insurance companies use these reports to investigate your compliance with proper codes and standards, and ultimately, the safety of your staff. This information is important because a record of infractions could also be a signal of a less-than-ideal working environment, which could affect the rate offered to the company. A good report will be just as impactful.
3. Occupational Descriptions
The type of work that your employees perform will affect the type of protection they need. For example, the risk of someone working in a manufacturing plant is likely to be very different from someone who works in a childcare center. For this reason, insurance companies will often ask for a completed list of all the occupational descriptions for your company to tailor the quote and policy.
4. Payroll Data
Workers' compensation insurance is designed to provide employees with compensation that is the same, or very close to the amount they earned while working. To ensure the insurance policy is suitable for the salary demands of your company, you will need to furnish the insurance company with payroll data so that they can assess the level of compensation that is necessary.
Having this information on hand will provide the insurance company with a detailed glimpse of your company, and more specifically, your need. To make sure you have everything you need, contact the workers' comp insurance companies you plan to obtain quotes from to learn what additional information they might require.