Workers’ compensation insurance provides vital coverage to your employees and shields your business from lost productivity and expensive liability suits. While Texas doesn’t require businesses to participate in workers’ comp, going without it leaves you exposed to potentially unlimited damages and attorney’s fees, which many organizations can’t afford. Understanding how workers’ comp premiums are calculated can help you get the best rate possible while protecting yourself and your employees.

How Workers’ Comp Premiums Are Calculated

1. The Size of Your Company

All insurance premiums are based on the risk that you’ll have to file a claim, so a larger workforce will usually result in higher costs. Generally, insurance companies base their premiums on your total payroll, with different rates depending on the job classifications of your employees.

2. The Industry You’re In

Some businesses are more dangerous than others, so an office-based business will likely have lower rates than a construction company. While there may not be much you can do about the rates of accidents in your chosen field, you can take proactive safety measures that may dramatically reduce your own insurance costs.

3. Your Own Claims History

The MOD, or Experience Modifier, is a number insurance adjusters use to reflect your company’s history of previous claims, compared to others in your industry. Implementing strict safety protocols, investing in high-quality equipment, and taking other steps to prevent work-related injuries can keep your employees working and help slash your workers’ compensation premiums.

For over a decade, the experienced, friendly professionals at Integrity Insurance Solutions have provided high-quality coverage to businesses throughout the San Marcos, TX, area. As an independent insurance company, they work with many of the most reputable providers in the industry, allowing them to give you the greatest protection available at the best rates possible. Visit their website for a closer look at their broad selection of insurance products, follow their Twitter for more tips and insight, or call (512) 396-2211 to speak to an agent and request a free quote.