Worker's Compensation: A brief Summary

Worker's Compensation AKA Workman's Comp AKA The dread of many business owners. What bothers my clients most? Not understanding the options available. In order to save money and reinvest savings back into your business, let's analyze briefly the 3 options any American company has:

State Fund (AKA WCIRB in CA or WCC in all other states)

• $1.2 B Premiums, $20 B assets, so 0% default (best possible rating)
•  Higher premiums, typically insure companies with the most risk
• No bundling with other commercial coverages
• MP is Minimum $900
• GC can use multiple class codes. Each code may be allocated differently to get a lower rate.
• Can issue refunds, and perform audits within 30 days of x-date

Private Carriers: Save money by bundling (commercial Package Policy)

• Liberty Mutual
• American International
• Travelers
• The Hartford
• Zurich
• State Ins. Fund
• State Compensation Ins. Fund
• Ace Limited
• Berkshire Hathaway (#15 in receipts)

PEO's:

• A secondary company acts as payroll and/or human resources for a client company.
• Inexpensive bundling of services (distribution of benefits, payroll, Worker's Comp, staffing and training), a seperate tax ID, and skilled workers make PEO's attractive
• Ultimately the best option to small clients, typically can save 10% by bundling.