Switching your workers’ compensation insurer? Here’s how to get workers’ comp insurance
If you’re a small business owner, you already know the importance of having robust workers’ compensation coverage.
Still wondering why you need workers’ compensation insurance at all? Well, the long and the short of it is this: You need the financial backing to avoid the steep costs of a lawsuit any time one of your employees suffers a work-related injury or occupational illness. And we bet you don’t want to pay the thousands of dollars in medical expenses, lost wages, and job retraining. Plus, workers’ comp insurance is almost always mandated by state law.
But maybe you’re ready for a change. Is your current workers’ compensation insurance carrier not cutting it? Bad experience with a recent workplace injury and how your insurer handled the process? Or is your policy period almost up, and you’re just searching for better rates?
Good news: Switching to another workers’ compensation insurer is pretty simple. Here’s how the general process goes:
1) First, check your current workers’ comp contract.
You’re always free to cancel your workers’ comp insurance policy.
Before you cancel, though, you should check your contract. Some insurance companies might charge you a fee for early cancellation. Often, the fee changes depending on when you cancel—if you’re close to the end of your contract, for example, the fee is normally pretty small.
To find out for sure, give your current insurer a call and ask them if they will penalize you for leaving the contract early. If they won’t, great. If they do charge a fee, ask them exactly what the dollar amount will be. And get the name of the person you speak to, just to cover your bases. (If you’re considering switching to us, we can make this call for you.)
By the way, don’t be put off by a change fee. In many cases, you’ll make up for it with the money you’re saving by switching.
2) Buy your new policy first.
Don’t wait until you cancel your old workers’ compensation policy. Although some online business insurers will backdate new policies to cover lapses in coverage, it’s generally better to buy the new policy before canceling the old one to be sure you’re covered. (You really don’t want to be caught without workers’ compensation insurance coverage.)
Great. You’re almost there.
3) Finally, cancel your old policy.
Give your prior insurer a call and give them official notice of cancellation.
Then, you’ll need to sign something called a Lost Policy Release. It’s often called an LPR for short. (This is another process Huckleberry can take care of for you if you’d like.)
Finally, to ensure that you won’t have a lapse in coverage, double-check with your old insurer that your cancellation date will be the same as the start date of your current policy. In other words, if your new policy starts on January 1, make sure your old policy will be effective through December 31 of the previous calendar year.
Workers’ compensation insurance FAQ
How do I choose a workers’ compensation insurance provider?
Comparing rates online doesn’t have to be a slog. Instead of researching many insurance companies separately or going through an overbooked insurance agent, simply head over to Huckleberry. In minutes, we’ll provide you with competitive workers’ comp rates. All you have to do is answer a few questions about yourself, your employees, and your business.
Remember, workers’ comp insurance isn’t the same as health insurance. Workers’ comp insurance covers the costs of medical bills, lost wages, and more due to a debilitating work injury or occupational illness (like carpal tunnel). Choosing a health care plan for your workers is a separate endeavor.
Does workers’ compensation insurance extend to independent contractors?
Workers’ compensation laws and regulations vary from state to state. In several states, as long as you have one part-time worker, you must purchase a workers’ comp policy. The same goes for full-time workers, of course.
However, independent contractors typically need their own workers’ compensation insurance policy (this could vary on their payroll). As ICs are not full employees of your business, you will not be liable for the range of benefits and payouts associated with a commercial workers’ comp policy.
Can I get workers’ comp coverage for myself?
Self-insurance is always an option. Sole proprietors or other one-person companies may choose to buy a workers’ comp policy just to be safe. It beats paying out-of-pocket for the losses associated with a work-related injury or illness.
How much does workers’ compensation insurance cost?
The cost of workers’ compensation insurance, as determined by your insurance provider, depends on several factors: The number of employees you have, your workers’ compensation claims history, the industry you work in, etc. That’s what makes your insurance rates unique. (Employees of a beauty salon in Wyoming face different risks than farmhands in Iowa.)
That doesn’t mean you can’t get an idea of how much you’ll pay for a workers’ comp policy.
Buy affordable workers’ compensation coverage in minutes online
We’ve got a whole menu of business insurance coverages ready: Workers’ comp, general liability insurance, and more. In a bind? Get a business insurance quote in minutes and get the coverage you need quickly.
Say goodbye to the old-fashioned insurance agencies for good. Huckleberry has got you covered, from South Dakota to North Carolina, Texas to Massachusetts.
Related Content on Huckleberry.com
Learn more about workers’ compensation benefits here.
How much does workers’ compensation insurance cost? Get an estimate here with our workers’ comp calculator.