Workers’ Comp Quote: Understanding the Components
At Enforce Coverage, we can help you obtain a Workers’ Comp quote from an A-Rated carrier. Once you receive a quote, we will assist you in understanding the components, as well as guide you through the process of choosing the best option for your WC coverage. A Workers’ Comp quote is just that, a quote providing you with the estimated costs for your potential policy. In order to better assist you with understanding your quote, the components of a typical Workers’ Comp quote include the following:
Class codes and estimated payrolls- A Workers’ Comp quote is calculated using the class code that applies to the operations of your business and the estimated payrolls for the potential policy period, which is usually one year. Each carrier has a base rate for each class code, which is multiplied by every $100 of payroll in order to determine the manual premium for your policy.
NYS Assessment- The NYS Assessment charge is found on a Workers’ Comp quote and is a mandatory charge determined by the NY Compensation Insurance Rating Board. It covers the costs of operating the Workers’ Compensation Board and special funds. While carriers previously varied in the percentage they charged for the NYS Assessment, effective 1/1/14, there is a set Assessment charge across the board.
Terrorism, Natural Disaster & Catastrophe- Every Workers’ Comp quote also contains a Terrorism, Natural Disaster & Catastrophe charge. This covers workers for job related injuries and illnesses that are related to terrorism, natural disasters and catastrophes.
Expense Constant- The expense constant is found on each Workers’ Comp Quote and is a flat fee thatcompensates for the basic costs of administering the policy.
Experience Modification Factor- If your company is experience rated, your Experience Modification Factor will appear on your Workers’ Comp quote. All employers with premiums in excess of $5,000 become experience rated and the factor is promulgated by NYCIRB. The modification, a percentage credit or debit applied to the employer’s manual premium, is determined by comparing an employer’s actual losses to the expected losses for an employer of similar size in the same industry. Depending on your experience, you may see a credit or debit on your Workers’ Comp quote.
Workers’ Comp Quote: We Can Help
At Enforce Coverage, we strive to assist you with our extensive knowledge of and experience in Workers’ Comp insurance. Understanding your Workers’ Comp quote is an important aspect of choosing the right Workers’ Comp policy, and we can help break down the various components that go into one. Contact us today for a competitive quote.