How Are Workers’ Compensation Rates Determined in Georgia?
Workers’ Compensation rates are determined by assessing certain factors, like industry, payroll, age, and history. Employers can influence premiums by reducing workplace accidents in Georgia.
Several factors come together to determine Workers’ Compensation rates in Georgia. The first is a company’s National Council on Compensation Insurance (NCCI) code and rate. This rate will be applied to a company’s payroll. Larger payrolls typically lead to higher premiums in Georgia. The number of Workers’ Compensation claims filed by employees and a company’s age will also help inform the rate of insurance in Georgia. To lower Workers’ Compensation rates, a company can enforce a drug-free workplace, train and background check employees, and get flexible and affordable insurance in Georgia.
For more information about what the Georgia workers’ compensation insurance brokers for small businesses at NPN Brokers can do for you, call us today at (866) 340-9120.
What Goes into Determining Workers’ Compensation Rates in Georgia?
While the base rate for Workers’ Compensation is determined by a company’s classification assigned by the National Council on Compensation Insurance, other factors also play a part in calculating premiums in Georgia. These include a company’s payroll, history of workplace accidents, and age.
The National Council on Compensation Insurance gathers information from many states regarding industry and prevalence of workplace accident to set Workers’ Compensation rates. Based on your employees’ responsibilities, your company will be assigned an NCCI code. The rate that corresponds with that code will be the lowest price you can pay for Workers’ Compensation premiums in Georgia. You can learn your company’s NCCI code by contacting the National Council on Compensation Insurance or the Georgia State Board of Workers’ Compensation. NCCI codes are attributed based on industry, meaning companies in more dangerous industries will have higher rates in Georgia.
Payroll heavily influences the rates of Workers’ Compensation policies in Georgia. Companies with more employees have a higher risk of workplace accidents occurring. Companies with fewer employees can have increased oversight, lowering the frequency of work-related injuries. While having a higher payroll can make your premiums more expensive, our Georgia workers’ compensation insurance brokers for general contractors can find a carrier and a policy that doesn’t take such a hard stance regarding charging companies with larger workforces more.
The frequency of workplace accidents helps determine the rate a company pays for Workers’ Compensation in Georgia. Typically, workplace accidents happen more often in dangerous industries like manufacturing or construction. Workers’ Compensation carriers anticipate this and calculate premiums accordingly. Companies in less dangerous industries but with many prior Workers’ Compensation claims might see their premiums spike drastically, as such a situation might indicate elevated risk to carriers in Georgia.
Workers’ Compensation insurance carriers often consider company age when determining the price of premiums in Georgia. Newer companies might be assessed as higher risk, as they have not had time to establish a good record of workplace safety. Companies that have existed for many years and have had few workplace accidents will likely be considered more responsible by Workers’ Compensation carriers, positively affecting their insurance premiums in Georgia.
How to Keep Workers’ Compensation Rates Low in Georgia
While you can’t change your NCCI code and rating, you can alter Workers’ Compensation premiums and influence how a carrier determines the price of insurance in other ways in Georgia. For example, enforcing a drug-free workplace and rigorously training employees can allow you to cut down on workplace accidents, leading to fewer claims and lower Workers’ Compensation premiums.
Because payroll is so influential in determining Workers’ Compensation rates in Georgia, employers may benefit from getting pay-as-you-go insurance. This type of coverage bases monthly premiums on real-time payroll numbers. Other plans base premiums on annual payroll estimates, which might not reflect the actual number of workers employed by your company on a monthly basis. Because of this, purchasing a pay-as-you-go policy can enable you to reduce spending on Workers’ Compensation premiums and keep costs accurate to the number of workers you employ in Georgia. In addition to getting you pay-as-you-go insurance, our brokers can pair you with carriers that do not require mandatory deposits, audits, or contracts, allowing you to save in other areas as well.
Drug-Free Workplace Program
Unfortunately, many workplace accidents in Georgia are due to employees being under the influence of drugs or alcohol. Employers can reduce the frequency of such accidents and positively impact their Workers’ Compensation premiums by becoming part of Georgia’s drug-free workplace program. Just by enrolling, employers will see a 7.5% decrease in their insurance premiums. Then, as substance-related workplace accidents decrease in frequency over time, Workers’ Compensation premiums can continue to lower in Georgia.
Improved Hiring and Training Practices
Workers’ Compensation rates are largely determined by the number of claims paid out to employees on an annual basis. By implementing rigorous training and hiring practices, employers can cut down on workplace accidents, lowering their premiums. For example, when hiring employees, companies can do background checks. This can unearth previous Workers’ Compensation claims filed by an employee and possibly alert you to fraudulent claims filed in the past. Training employees properly can reduce the frequency of mistakes or negligence causing workplace accidents in Georgia.
Filing for Exemptions
Up to five LLC members or corporate officers of a company can file for an exemption from Workers’ Compensation coverage in Georgia at any time. In doing this, companies can lower the number of workers included on their payroll information and reduce Workers’ Compensation policy premiums. Filing for an exemption from coverage will make you ineligible to get Workers’ Compensation benefits if injured on the job, which is something to consider before excluding yourself from your company’s insurance in Georgia.
Get Affordable Workers’ Compensation in Georgia Today
Call NPN Brokers at (866) 340-9120 to speak with our Georgia workers’ compensation insurance brokers for roofing contractors today.
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