If you own a business and have employees, you need workers compensation insurance — it’s not only the law in most states, but it’s also critical protection for your workers and your business. Whether you’re a new contractor, a restaurant owner, or a seasoned tradesman, chances are you’ve had plenty of questions about how this coverage works, what it costs, and what it covers.
In this article, we’ll cover the 20 most common questions business owners ask about their workers’ comp policies. Along the way, we’ll sprinkle in helpful advice, a few industry tips, and explain how BGES Group, a Tri-State workers compensation specialist, can help you get the best policy for your needs.
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1. What Is Workers’ Compensation Insurance?
It’s a policy that pays for medical expenses, lost wages, and other benefits if an employee gets injured or sick while working.
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2. Is Workers’ Compensation Insurance Required by Law?
Yes. Most states, including New York, New Jersey, and Connecticut, require any business with employees to carry workers comp insurance. Not having it can lead to stiff penalties.
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3. How Are Workers’ Compensation Insurance Rates Determined?
Rates depend on your payroll, industry classification code, claims history, and the states you work in. For example, New York workers compensation insurance for a roofer will cost more than for an office clerk.
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4. What Does a Workers’ Comp Policy Cover?
It covers:
• Medical treatment
• Lost wages
• Rehabilitation expenses
• Disability benefits
• Death benefits for dependents
It doesn’t cover injuries outside of work or those resulting from intoxication or intentional acts.
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5. Who Needs to Be Covered Under a Workers’ Comp Policy?
All employees, including full-time, part-time, and sometimes subcontractors. If you hire subcontractors, ask for their certificates of insurance — or you could be held responsible for their injuries.
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6. What Happens If I Work Out of State?
Important tip: If you perform work out of state for extended periods — especially weeks at a time — you need to make sure your workers comp policy includes coverage for those states. Not every policy automatically extends coverage outside your home state. BGES Group can help make sure you’re properly covered.
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7. How Does a Workers’ Compensation Premium Work?
The premium you pay up front is a deposit annual premium. At the end of the policy period, the insurance company conducts a payroll audit. If you paid more or less in payroll than estimated, your premium is adjusted accordingly.
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8. What Is a Workers’ Comp Audit?
An audit is a year-end review of your actual payroll, job classifications, and subcontractor costs to ensure you were charged the correct premium.
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9. Can I Get a Quote From Different Insurance Companies?
Yes. It’s smart to shop around. Not all carriers offer the same rates or services. If you’re Googling workers comp insurance quote, consider a broker like BGES Group, who specializes in Tri-State workers compensation insurance and shops multiple carriers for you.
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10. Should I Use a State Plan or Private Insurance Company?
State funds are typically for high-risk or hard-to-insure businesses. If you qualify for coverage through a regular insurance company, you’ll often get better service, rates, and options. BGES Group can help determine which is best for your business.
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11. Can I Lower My Workers’ Comp Costs?
Yes — by:
• Implementing a safety program
• Conducting regular safety meetings
• Correctly classifying payroll
• Maintaining clean claims records
• Working with an experienced broker
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12. How Do I Report a Claim?
Immediately notify your insurance carrier, document the incident, and make sure the employee receives medical care.
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13. What Is an Experience Modification Factor (Mod)?
A mod is a score based on your company’s claims history. A lower mod can reduce your premium.
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14. Do Owners Need to Be Covered?
In many states, owners can opt out, but if you work on job sites, it’s often safer (and required by general contractors) to be covered.
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15. What Happens If an Employee Gets Hurt and I Don’t Have Coverage?
You could face fines, lawsuits, and personal liability for the employee’s medical bills and lost wages.
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16. Are Subcontractors Covered Under My Policy?
Not unless you specifically include them. Always collect their certificate of insurance to prove they have their own coverage.
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17. What Is a Workers’ Comp Class Code?
It’s a number that identifies the type of work your employees perform. Rates are based on how risky the work is.
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18. How Fast Can I Get a Workers’ Comp Insurance Quote?
Many brokers can get quotes the same day, especially if you have your payroll and business info ready. BGES Group offers fast, competitive quotes for businesses throughout New York, New Jersey, and Connecticut.
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19. Can I Be Insured Through an Assigned Risk Pool?
If private insurers decline to cover you, you’ll be placed in a state-assigned risk pool. It’s usually more expensive. BGES Group can help you avoid this by accessing specialized markets.
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20. Can I Make Monthly Payments on My Premium?
Yes — most insurance companies offer payment plans, so you don’t have to pay the full premium up front.
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Why Choose BGES Group?
At BGES Group, we specialize in Tri-State workers compensation insurance, helping contractors, tradesmen, and small business owners navigate the confusing world of workers’ comp. We shop the best workers comp insurance companies, develop loss control programs, help with audits, and make sure your policy covers out-of-state work when needed.
If you’re unhappy with your current rates, stuck in an assigned risk plan, or just want a better broker relationship, BGES Group can help you find a new company that better fits your business needs.
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Contact BGES Group Today
📞 Gary Wallach: (914) 806-5853
📧 Email: bgesgroup@gmail.com
🌐 Website: http://www.bgesgroup.com
Let us help you protect your business, your people, and your bottom line.