Steep Decline Continues for California Workers Comp Rates 2019

California Workers Comp Rates 2019

In 2019, California Workers Comp Rates will be on the way down for the 5th year in a row. Next year the rates will be going down on average by 23.5 percent compared to 2018.  Since 2015 the rate has dropped every six months accounting for a total average savings of 72 percent.  According to Dave Jones, the California Insurance Commissioner, released a statement in November stating, “Cost savings in the workers’ compensation system have helped insurers and employers deserve to share in the cost savings through lower premiums,”

California has seen significant decreases in workers comp premium over the past several years, but the business community within the state still suffers from some of the highest rates of any state throughout the country.  According to the Oregon premium rate ranking study. The state of California has maintained the same position as the most expensive state in the country to purchase workers compensation coverage.  Workers’ compensation premiums in California cost 176% of the national median.

California Workers Comp Rates 2019

What Contributed to the Decrease in California Workers Comp Rates?

State Bills

California Workers Comp Rates 2019 are decreasing for a number of reasons.  Many experts credit state bills 863 and 1160 as well as assembly bill 1244.  In total, these three bills have contributed to favorable medical loss development because of an acceleration in claim settlement.

CURES Opioid Program

A huge contributor to the decrease in workers compensation premium has been the savings the system has seen in relation to the opioid epidemic.  Last year the state workers compensation system paid out one fifth as much as it did in 2013 ($3,204 to $15,687 per 100 claims), according to WCIRB, the California Workers Compensation Insurance Rating Bureau..

This decrease has been because of the way the state has responded to the opioid epidemic. The state developed a program called CURES (Controlled Substance Utilization Review and Evaluation System). THe CURES Program created a database that lists Schedule II, III, and IV controlled substances that are prescribed by licensed facilities. This program requires pharmacies and other businesses that distribute these substances to provide specific information to the Department of Justice on a weekly basis. This has significantly decreased the amount of opioid abuse throughout the state and in turn benefited the workers compensation system.

Golden Gate Bridge

How Can Businesses Maximize Savings on California Workers Comp Rates?

Shop Around Your Policy

It is not a wise decision to switch carriers every year for a slight drop in price, but it is important to make sure your carrier is offering you a competitive price. Shopping your policy around periodically can help you maximize coverage and savings.

Partner with an Independent Agent

One of the best ways to shop around your policy is to partner with an independent agent. Especially an independent agent who has a relationship with as many carriers as possible This allows them to shop around your policy for you in an attempt to get more comprehensive coverage at lower rates.


When you are talking to your independent agent, it is important to take an adequate amount of time to tell them about the ins and outs of your business. The more your insurance agent knows about your business the more likely they are to get your business the comprehensive coverage it deserves.

Tell Your Agent What You Value Most

When you communicate with your independent insurance agent, it is important to tell them what you value most. Each day, insurance agents speak with many people from many different walks of life. They can only act on the information you give them. If you value the lowest price possible than tell them. If you want the most comprehensive package of products no matter the cost than it is equally important to tell them.  No matter what it is that you value as a business owner, it is immensely important to tell your insurance agent what you value.

Bundle Policies

Consider bundling all insurance policies together in order to maximize savings and to ensure there are no gaps in coverage. Insurance carriers are much more likely to dig deep for discounts and credits when they know they are going to sell a business multiple policies.

Lower Limits

Lowering your limits can be dangerous in some instances. This is why it is important to speak long and honestly with your agent about the actions of your business.  Lowering your limits can be a good way to lower premium.

Ensure Your Business is Classified Properly

Far too many businesses have employees who are classified improperly. Some employees work in lower risk positions and for purposes of workers compensation, they cost less for coverage. When employees are classified wrong, it can cause your business to over or under pay for premium. This discrepancy usually gets fixed during a post term audit, but it can cause a surprise when your business owes additional premium at the end of the term.

Pay as You Go

Another way to save on premium is to choose the pay as you go option. With a traditional workers compensation policy, 25-33 % of the total premium is due just to get coverage in place. With a pay as you go plan, a business can get coverage in place for as little as a few hundred dollars. The rest of the payroll will be due each month based upon the actual payroll from the previous month. A traditional plan is based upon an estimated payroll from the previous year or a number of previous years. A pay as you go plan can help free up cash for other business needs and reduce the need for a mid term audit.

Safety Program

Safety programs are a great way for businesses to reduce injuries, lessen missed time by employees, and lower what the business pays for multiple lines of commercial insurance. It is important to document all activities related to your safety program so you can show this documentation to your insurance carrier when quoting policies.

Return to Work Program

In addition to a well-documented safety program, a return-to-work program can help your business decrease the amount of time injured workers spend off the job. If you stay in business long enough you are going to experience an injured worker. When that worker is off the job they have time to develop new habits not associated with their daily work routine. Statistics show that the longer an injured worker spends away from the work, the more likely the worker is to never return to full-time employment. Using a return to work program to get an injured worker back on the job, even in a limited capacity, can significantly help your business get that employee back to full-time employment.  This will have a dramatically positive impact on your businesses experience modification rating.

Colorado Workers Compensation Insurance Rates 2019

In 2019 Colorado Workers Compensation Insurance Rates are Declining by 10 percent

Colorado Workers Compensation Insurance Rates in 2019 will be decreasing by 10 percent on average across all classification codes. This decrease will go in to effect on January 1, 2019; representing  the fourth straight year Colorado has enjoyed a rate reduction for workers comp coverage. In 2018, rates declined by an average rate of 12.7 percent.  In addition to this decrease Pinnacol, the state provider, announced a dividend payout of nearly $70 million. This is also the fourth consecutive year Pinnacol has paid out a dividend.

Colorado Workers Compensation Shop 2019

How is the Market for Colorado Workers Compensation Insurance?

Colorado Workers Compensation Rates are declining for the fourth consecutive year.  As of 2017, rates were 19 percent lower than the national average.  This year, the Colorado Division of Insurance approved a recommended decrease of 16.7%. This decrease was based on recommendations from the National Council on Compensation Insurance (NCCI).

The loss costs are a component of workers’ compensation insurance premiums that are based upon the average cost of lost wages compared to medical payments to workers who are injured on the job. There are a lot of factors that impact overall workers comp costs, including the frequency and severity of claims, the number of required treatments, the health care costs, and overall costs to cover workers compensation claims. This years decrease in premium can be attributed to a number of factors, but a significant factor was the reduction in the number of claims filed which has fallen from 26.3 million in 2002 down to 18.4 million in 2016.  

Not all employers will see a decrease as large as other businesses. Some will see a smaller decrease and some will see no decrease at all. The classification code compared to the experience modification rating of the business will also contribute to the amount of decrease a business experiences.


Workers Compensation Rates Tennessee 2019

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Workers Compensation Rates Tennessee 2019

Workers Compensation Rates Tennessee 2019 are heading in the right direction again this year. This time in the amount of a 19 percent decrease on recommended workers compensation rates for businesses throughout the state. This is the third consecutive decline preceded by decreases of 12.6% in March of 2018 and 12.8% in March of 2017.  Iconic Nashville, Tennessee where businesses will enjoy lower workers compensation rates tennessee 2019

Why Workers Compensation Rates Tennessee 2019 are Decreasing?

Workers Compensation Rates Tennessee 2019 are decreasing for a number of reasons. Many within the business community of Tennessee credit reforms made to the workers compensation system by Govenor Bill Haslam in 2013. Since these reforms were enacted, loss cost reductions have decreased 48 percent. Decreased workplace injuries account for a substantial amount of the savings. Loss-time frequency also has contributed to the decrease in rates for workers compensation premium. Loss-time frequency refers to the amount of money insurance carriers have paid for lost wages when injured workers are not able to work because of workplace injuries. Within the workers compensation system, the average cost per case and the average medical cost per case have remained stable in addition to other significant decreases. Waterfall in Eastern Tennessee

What can Businesses do to Maximize Workers Compensation Rates Tennessee 2019?

Workers Compensation Insurance can rise and fall from year to year depending upon a number of factors within the individual state. Even though rates have declined significantly over the past 5 years in the state of Tennessee, business owners should not get comfortable with the savings they are receiving. There are a few cost effective ways to maximize savings in addition to the savings being based on to business owners by the state workers compensation system.

Shop Around Periodically

It is not advisable to switch agencies or carriers each year for a slight decrease in premium, but it is beneficial to shop around to ensure you are maximizing savings. It is not a good idea to change carriers frequently because when a claim does occur the carrier will take in to account how long you have been a customer when they are determining whether or not to raise your rate or deny your business coverage altogether.

Bundle Policies

When an underwriter knows they are likely to sell a business multiple policies, they are much more aggressive with credits and discounts. In most states, Workers Comp and General Liability are required by law for nearly all businesses. In most cases, these are not the only policies most businesses need. Securing additional coverages is the best way to fully protect your business and to maximize savings.

Partner with an Independent Agent

In order to shop around your policies and maximize savings you need to partner with an experienced insurance professional. An independent agent is usually the best way to do this because they have the ability to shop your policies around for you. This will save you time and maximize savings. They can maximize savings because they know which carriers have an active interest in quoting each industry and policy. A captive agent sells the products of one carrier or a select few. Because they are tied to one carrier, they cannot maximize savings by looking around for you.

Have a Documented Safety Program

A well-documented safety program is the best way to save when purchasing insurance and it is the best way to prevent an increase in premium after a claim. When a business has a year in which there are several claims or one severe claim, it is more than likely that their premium will go up. If there is a well-documented safety program in place, the independent agent the business partners with can use that program to show the carrier that the business is taking the proper steps to limit these claims. It can be used to show the claims are out of the ordinary and not a sign of future losses.

Make Sure you are Classified Properly

Many businesses are not classified properly. This can happen when a business has many employees who are in different job codes. If your business has many office employees and a few employees who work manual labor, it is important to classify all employees properly. This can also be the case when you have employees who work part of the week in one role, but at other times they work in a role where they must be classified differently. Partnering with a payroll company can help your business stay on top of these discrepancies.

Alaska Workers Compensation Insurance Rates 2019

Alaska Workers Compensation Insurance Rates are Declining in 2019 

In 2019 Alaska Workers Compensation Insurance Rates are going to decline by 17.5%. This decrease in recommended workers compensation insurance premium rates was announced by the Alaska Division of Insurance on November 6th and will go in to effect the first of the year. This reduction is in addition to a 5.4% decline in 2018.  These two reductions have contributed to the business community in Alaska paying 25% less for workers compensation insurance premium since 2015.  According to the Alaska Labor Commissioner Heidi Drygas, “This would be the biggest year-to-year decrease in workers’ compensation rates in 40 years. The department worked tirelessly to reform the workers’ compensation system to increase efficiency and lower medical costs, both major factors in premiums.”

Alaska Workers Compensation Insurance Rates are high because of the remoteness of the state recognized in this photo of Mount McKinley.

What Contributed to Declining Alaska Workers Compensation Insurance Rates

Premium for Workers Compensation Insurance has declined in Alaska because of a number of factors. Continuing declines in claim frequency and favorable medical costs are two major factors in the reduction. Governor Bill Walker spoke about the declines in front of the Department of Labor and Workforce Development when he said, “Thank you to the Alaska State Legislature and the Department of Labor and Workforce Development for their work on payment reform, contributing to significant rate reductions for 2019.”

What can Business Owners do to Maximize Alaska Workers Compensation Insurance Rates?

There are many ways business owners in the state of Alaska can maximize their savings when it comes to commercial insurance. Especially when it comes to state mandated workers compensation . Here is a list of five things a business owner should consider in order to maximize savings on workers compensation insurance.

  • Make sure your Business is Classified Properly
  • Implement a Safety Program
  • Incorporate a Return-to-Work Program in the Safety Program
  • Consider Pay-as-You-Go Workers Compensation
  • Partner with an Independent Insurance Agent



Workers Compensation Florida Rates 2019

Volatility in Workers Compensation Florida Rates 2019 Continues

This year the Workers Compensation Florida Rates 2019 are moving in a positive direction for small business owners. The Florida Insurance Commissioner, David Altmaier, has approved a revised workers compensation rate filing of 13.9 % decrease.  According to Altmaier, ‘The rate increase amounts to approximately $454 million in savings for employers’. This is especially good news because the Florida Workers Compensation System has been in flux for the past few years.

Workers Compensation Florida Rates

Why have the Workers Compensation Florida Rates 2019 Been in Flux?

This decrease comes after an increase for Workers Compensation Florida Rates 2018. There have been several years of instability within the workers compensation system in Florida. In 2017 there was an increase of 14.5%.  This increase was attributed to two state Supreme Court decisions that have put the system in flux. Those two cases were – Castellanos v. Next Door Company and Westphal v. City of St. Petersburg.

In the Castellanos Case an injured employee sued and the case was taken all the way to the state supreme court. The supreme court ruling was ruled invalid because it limited the ability of an injured worker to get reasonable amount in judgments for attorney’s fees. Basically the ruling meant judges no longer had to stick to strict guidelines when ruling on workers compensation cases.

In the Westphal Case, there was a rule that was challenged that a 104-week statutory limitation on temporary total disability benefits is unconstitutional. The court ruled this portion of the law unconstitutional because it denied injured workers proper access to the courts. The Florida Supreme Court extended this period to a 260-week limitation. This 260-week limit is more in line with states throughout the country.

In Addition to these two court cases is State Senate Bill 1402.  SB1402 accounted for 1.8% of the recent increase in premium by increasing the cost for updates within the Florida Workers’ Compensation HCPR Manual. On top of these three issues

in 2017 the Florida Insurance Regulators took over Guarantee Insurance Company (The states assigned risk workers comp provider) because it had become insolvent.  This left 1250 businesses in the state of Florida scrambling to find a workers comp carrier.

These two court cases caused the initial increase in workers comp premium throughout the state of Florida. Since this increase there have been three decreases every six months. Those decreases were in November of 2017 for 9.5%, in May of 2018 1.8%, and this 13.9% decrease set to go in to effect January of 2019. These decreases have contributed to the volatility of Workers Compensation Florida Rates.  For the time being, 2019 will be a year when small businesses will benefit from lower rates on workers comp premium for the time being.

Florida Workers Comp Rates 2019 are decreasing because of significant improvements in experienced losses by insurance carriers. This means the insurance carriers paid out less in claims. Some within the industry credit safer workplaces, enhanced efficiencies in the workplace, and an increase in the use of technologies for the decrease in costs.

The Future of Florida Commercial Insurance Rates

Not directly related to Workers Compensation Insurance Rates, but something that will have a lasting impact on the business community within the state of Florida is the response to Hurricane Michael. In 2018, Florida Governor Rick Scott issued an emergency order to make sure additional protections were put in place for Florida Policyholders. The most substantial aspect of this declaration was a 90 day freeze on any rate hikes.

In addition to the response to Hurricane Michael, the Florida Legislature is implementing an Independent Medical Review Program. This change will impact the Workers Compensation System.  The Legislature is looking in to implementing a 6-year-old independent medical review program for workers compensation claims. This program has previously been enacted in the state of California. IT has been rather successful in this state. This program disputes surrounding medical treatment of injured workers are resolved by physicians and not by the court system. In the state of California this enabled more efficient resolution of claims and reduced the lengthy judicial process.

Workers Compensation issues for Medical and Dental Offices

4 Tips for Medical and Dental Offices to Smoothly interact with their Insurance Company.

Medical and Dental Offices have unique risks that differ depending upon the location, size, and scope of the business. Because of these unique risks, a business in this industry needs an insurance agent and insurance carrier that are prepared to address these unique risks. As a Small Business Owner of Medical and Dental Offices, you more than likely know the importance of adequate insurance. Your clients carry health care insurance coverage so they can receive the treatment from your business without jeopardizing their personal finances. As a Small Business Owner, it is wise to also properly protect the investment you make into your business. Here are four Tips for securing adequate insurance coverage and saving on premium.

Medical and Dental Offices

 Take your time to Purchase Insurance for your Medical and Dental Offices

Medical and Dental Offices are unique and they have unique risks. Some offices are for general practice physicians. Other offices offer sports medicine, chiropractic services, or physical therapy. Still other offices offer dental or orthodontic services. No matter what type of medical service your business offers, it is important to insure the business properly. Purchasing Insurance is not a wise time to rush through a decision. Carve out an adequate amount of time to prepare for and talk to your independent insurance agent.

Keep Open Lines of Communication with your Insurance Carrier

When you are establishing a new relationship with an insurance agent, it is important to take an adequate amount of time to talk about the day to day operations of your business. They can help you understand risks you may not have realized that you face. Also, They can only make a recommendation about insurance coverage based upon the information you give them about your business. The more information they have about your business and the more information you give them about what type of coverage you prefer, the more likely they are to provide the type of coverage that is best for your business.

Partner with an Independent Insurance Agent when purchasing Insurance for Medical and Dental Offices

There are several reasons why partnering with an Independent Insurance Agent is always the best way to go about securing the best insurance coverage for Medical and Dental Offices.

  • An Independent Agent Works for You
  • An Independent Agent gives you choice
  • An Independent Agent can be your advocate
  • An Independent Agent can save you time and money

An Independent Insurance Agent is a true middle man between you, the business owner, and the insurance carrier you are purchasing coverage. In some industries, eliminating the middle man is a good way to cut costs. In the insurance industry, that is not always a wise decision. An independent insurance agent can give your business choice when it comes to choosing coverage, where as a captive agent can offer you the coverage of one or a select few carriers. This will save you money because the independent agent forces carriers to compete for your business. They can also save you time because they shop insurance so you don’t have to. Finally, an independent insurance agent can be your advocate when you have to file a claim. It is important to keep them in the loop when you have a claim because they can negotiate on your behalf if the carrier is not living up to their end of the bargain. They can also be an advocate when you renew coverage at the end of a year when you had several or a sever claim.

Talk about Safety

As the owner of the business and the lead physician within Medical and Dental Offices, Doctors set the tone for the other employees within a business. If you focus on safety, the rest of the staff will follow suit. Because of the nature of the business, cleanliness is important to all aspects of your business. This is important to not only take care of your patients, but also to keep a healthy staff. Your business cannot operate without a healthy staff. Focusing on safety in all aspects of the business will keep your employees safe, cut down on the frequency and severity of insurance claims, and can contribute to a lower insurance premium over time.


Business Liability Category: Health Care Providers

SIC Business Insurance Codes:

  • 8011: Offices and Clinics of Doctors of Medicine
  • 8042: Offices and Clinics of Optometrists
  • 8031: Offices and Clinics of Osteopathy
  • 8021: Offices and Clinics of Dentists

NAICS Liability Classifications:

  • 621111: Office of Physicians (Non Mental Health)
  • 621320: Office of Optometrists
  • 621320: Office of Dentists
  • 621498: All Other Outpatient Care Centers
  • 621330: Office of Mental Health Practitioners
  • 621399: Office of Other Health Practitioners

Business ISO General Liability:

  • 66561: Medical Office

Common Workers Compensation Class Codes:

  • 8832: Doctors, Physicians and Office Staff

4 Ways Going Green Can Help Your Small Business

Whether it is cutting costs or saving on workers Comp insurance. A business benefits from Going Green.

Going Green is a buzz word used by the environmental movement to encourage individuals and businesses to make decisions with the environment in mind. What many people and businesses fail to understand is that the steps towards a green business are also steps that can save your business money. Whether it means using less paper by going completely digital or saving on energy by installing compact fluorescent light bulbs, going green almost always saves a business money. Here are three ways your business can Go Green and three ways your business can benefit from Going Green.

Going Green

How can your business Go Green

Buy Secondhand Furniture

Many startups are cash strapped. Because of a lack of cash, many businesses are buying on price when they look to get furniture for their office. In many instances, new furniture is cheaper up front. The price is because much of this new furniture is made to be disposable. Cheaply built furniture will not last long and may cause your business to suffer a workers comp claim when an employee has to go to the doctor because of a poorly fitting work station. Your business can avoid the cost of a Workers’ Compensation issue by purchasing sturdy secondhand office furniture.

Use Energy Star Certified Products

ENERGY STAR is the government-backed symbol for energy efficiency. It provides simple, credible, and unbiased info consumers and businesses can rely on to make well-informed decisions about their business. Many things around the office waste energy meaning a huge portion of the electric and gas bill your business uses each month goes to wasted energy usage. Energy Star products can reduce this significantly.  Below are some examples of how your business is wasting energy and how Energy Star Products can help.

Some examples:

  • Qualified refrigerators are at least 15% more efficient than the minimum federal efficiency standard.
  • Qualified TVs consume 3 watts or less when switched off, compared to a standard TV, which consumes almost 6 watts on average.
  • Office equipment that qualifies automatically enters a low-power “sleep” mode after a period of inactivity.
  • Qualified light bulbs (CFLs) use two-thirds less energy than a standard incandescent bulb and must meet additional operating and reliability guidelines.
  • Qualified furnaces offer a rating of 90% AFUE or greater, which is about 15% more efficient than the minimum federal efficiency standard.

Instead of wasting money, consider purchasing Energy Star products and the additional savings could make it easier for your business to afford many other things needed to expand your business.

Upgrade Your Lights

Switching to compact fluorescent light (CFL) bulbs is an easy upgrade that can reduce your risk of a Workers Comp Claim. On top of benefiting the health of your employees CFL’s last 3-25% longer than traditional light bulbs. This means your business does not have to replace the light bulbs as frequently. Also, according to, CFL’s use 25-80% less energy depending upon the type of light you decide to use.  

How can Going Green Benefit my Business?

Employee Morale

Going Green does not only benefit your businesses bottom line, it can also benefit your employees. Companies with a good environmental record tend to have more committed and motivated employees. This is because it fosters positive feelings amongst the staff and from customers. Getting employees involved in company wide green initiatives can boost morale and give the employees a feeling the health and well-being of themselves, the business, and the community as being taken seriously by your business.

Build Goodwill in your community through Green Marketing Awareness

If your business makes a change within your business with Going Green in mind, this is a great opportunity to promote this action and gets some positive press for your business at the same time. This can broaden support for your company within the community, and have an impact on the companies bottom line.

Improved Worker Health

Most actions a business takes when going green have a direct impact on the health and well-being of the employees at the facility. When your business uses better lighting, the employees have less stress in their day to day lives dealing with eye issues. When the business installs an air quality filtration system, it not only helps the business, but it helps the health of the employee by them breathing in better air. These employees will in turn be more healthy, miss less time due to illness and have a higher sense of morale simply from better health.


National Safety Month

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What are you doing to make your business safe during National Safety Month?

June is National Safety Month. It is being promoted by the National Safety Council and OSHA. National Safety Month focuses on reducing leading causes of injury and death at work, on the road and in our homes and communities. Some areas the National Safety Council have found to be places of concern throughout the workforce include: fatigue, workplace violence, driving, slips, trips, and falls; as well as drugs in the workplace, over-exertion, and ergonomics. In honor of national safety month here are some tips to help your business deal with each of these risks.

June is National Safety Month


Fatigue is a very serious problem for many small businesses, especially for businesses that have employees doing physical work. Adults need seven to nine hours of sleep each day to reach peak performance, but nearly one-third report averaging less than six hours. It is not your place as an employer to monitor the amount of sleep employees get when they are away from work, but it is important to talk about being fresh and alert when on the job. The effects of fatigue are far-reaching and can have an adverse impact in all areas of our lives. It is not too drastic to send an employee home for the day because of fatigue, especially when that employee is putting them self or other employees at risk. In some situations, sending an employee home is just the message a manager needs to send in order to get the entire workforce to take fatigue and workplace safety serious.

Workplace Violence

Each year more than two million people report being a victim of workplace violence. Most of the violence that occurs in the workplace falls in to one of four categories; criminal intent, customer/client, worker-on-worker and personal relationship. No matter what type of business you own or operate, workplace violence is something you need to prepare for and not tolerate in any way shape or form.


Driving is one risk that will cause your insurance premium to rise as much as any risk your business might face. Businesses that have employees who drive as part of their work tend to have more frequent insurance claims and those claims tend to be more severe in nature. Most of the claims result from some form of distracted driving. Distracted driving is an enormous killer on the roads today and there are three main types of distracted driving; manual, visual, and cognitive distractions.

Slips, Trips, and Falls

Slips, Trips, and Falls occur most often in businesses that have a lot of exposure to the open public. Bars and restaurants are a prime example of a business that is exposed to a large amount of slips, trips, and falls. There are several steps you and your business can take to limit the frequency and severity of injuries.

Drugs in the Workplace

According to the Surgeon General, nearly 21 million Americans are living with a substance use disorder.  The same study showed that three-quarters of these people are employed and they miss 50% more time than employees without a substance abuse disorder. Construction, entertainment, recreation and food service sectors have twice the national average of drug abuse in the workplace while industries with a higher percentage of women or older adults had a two-thirds lower rate of substance abuse. No matter what industry you operate in or the age of your workforce, your business more than likely will have to deal with drug use in the workplace. Having a plan in place for how you plan to communicate with and support all employees involved in a drug use situation will positively impact your business.


5 Tips for Lawncare and Landscaping Companies

Purchasing commercial insurance is a very important aspect of any lawncare or landscaping business. Properly protecting the business may mean the difference between the long-term success or failure of the business. Partnering with an experienced insurance professional is the first step towards securing the ultimate insurance package. For most businesses, time is precious. If your time is precious, partnering with an independent insurance agent is a great way for you to get multiple quotes from multiple carriers with little work on your end. Most independent agencies partner with 10 or more insurance carriers. This allows the independent agent to get quotes from multiple carriers instead of you have to call each one individually. An Independent agent shops for insurance so you don’t have to. Those independent agencies can also give your business insight about the carriers that they may not be able to divulge to you if they work for only one company. Here are four tips to help a business owner prepare for the next time they have to renew commercial insurance.

Make sure you are classified properly

There are more than 700 classification codes that differentiate businesses within similar industries. The lawn care and landscaping industry has as many as nine different classification codes. Some codes are for businesses that only cut grass. Another code is for a business that install sod and other shrubbery.  Another code is for businesses that have employees who climb high into a tree with a chainsaw to cut off limbs while in the air. Each classification code has a different level of risk and they pay a different amount for insurance premium. If your business is classified improperly it can cost you an enormous amount in unneeded premium payments.

Consider Alternative Payment Options

Pay as You Go Workers Compensation Insurance Programs offer businesses the ability to pay premium in real-time based upon the amount of payroll from the previous month. A traditional workers comp policy requires a business to pay premium based on an estimate of the payroll from the previous year or the previous three years. For a landscaping business, man hours can fluctuate enormously from year to year. This may cause your business to over pay throughout the year for unnecessary premium. This discrepancy is usually fixed during the end of term audit, but even if you get a refund you still have had cash-flow tied up in premium throughout the year. This money is tied up in insurance premium instead of allowing the business to spend this money on more immediate business needs.

Implement a Safety Program

Safety programs are a great thing to implement in to any business for a number of reasons. First and foremost, a safety program is the right thing to do for the employees of the business. In the lawncare and landscaping industry, healthy employees are productive employees.  Making sure your employees are safe will keep the employees happy and healthy, but it will also save your business immensely. Safety program will contribute to less injured employees. Less injured employees means less insurance claims. Less frequent and less severe insurance claims means a better experience modification rating and this rating is the number one thing a business has control over to keep the cost of insurance low.

Include a Return-to-Work Plan in your Safety Program

Including a return-to-work plan inside of a businesses safety program will contribute immensely to a positive experience modification rating. This is because when a business has a injured employee, limiting the amount of time the injured employee is away from work will limit the amount the insurance company has to pay for lost wages. Also, humans are creatures of habit. When an employee is injured they are taken out of their normal routine. The longer the injured employee stays away from the job, the more time they have to create new habits. The longer an employee stays away from work, the more likely they are to be on long term disability. This is the type of claim that can have disastrous effects on your experience modification rating. Getting your employees back on the job, even in a limited capacity, drastically increases the likelihood they will return to full=time employment. Talking with your managers and key employees about ways to get injured workers back on the job and back in to the company culture can have huge effects on employee morale.

Pay as You Go Workers Compensation Insurance

5 industries that can benefit from Pay as You Go

Pay as You Go Workers Compensation Insurance is a unique payment option for paying for Pay as You Go Workers Comp Premium. The program allows businesses to get coverage in place at a significantly lower amount up-front. This can benefit cash-strapped businesses that needs this money to spend on more pressing business needs. It also allows businesses to pay premium each month in real-time based upon the previous months payroll. This allows seasonal businesses to pay a majority of their yearly premium during the busy season when the business has cash on hand while allowing the business to pay less for premium during the slow months when cash-flow may be more difficult to come by.



pay as you go workers compensation insurance

Lawncare and Landscaping

The lawncare and landscaping industry tends to be seasonal in nature depending upon where the business is located. In most climates, the busy season in this industry lasts 4 to 6 months out of the year. A pay as you go workers compensation insurance policy will allow your business to pay premium in real-time based on the previous months payroll. This will allow the business to pay a lower amount for premium during the slower months when cash-flow is lower and pay the bulk of the premium for the year during the busy season when cash is plenty.


Resorts are the ultimate seasonal business. Regardless of whether the resort is located in a tropical climate like Florida or an arctic climate like Aspen, Colorado; the majority of the money made for the resort is made during a small amount of the year. Most resorts may have as many as 500 employees on payroll during the peak season, but may get as lean as 50 employees during other parts of the year. This is one of the perfect types of businesses to benefit from pay as you go workers compensation insurance.


For most areas of the country there is one growing season for most farm businesses. In some areas the climate is ideal for 2 or 3 growing season and some farms are able to grow some crops in the colder months like Winter Wheat, but most farms experience one growing season per year. This means the farm business has a portion of their year where they will have a significantly larger staff on payroll. This allows the business to pay more during a portion of the year when they are busy and less during another part of the year when work is slow. It also allows businesses to pay for their premium more accurately than a traditional workers comp policy that is based upon an estimated payroll from the previous year or three years.

Ice Cream or Snow Cone Shops

Ice Cream or Snow Cone Shops tend to be seasonal and small revenue businesses. Many do not have enough cash on hand at the beginning of the season to pay for a quarter or a third of the total premium in one lump-sum payment. For these types of businesses pay as you go workers compensation insurance can be the perfect remedy to get coverage in place to start up the Summer Season.


Construction is not as seasonal as other businesses, but there are definitely high and low seasons involved in the trade. Many businesses get paid in a lump-sum when the job is finished. This can make it difficult to pay premium when business is slow or you have a project that is long-term. Depending upon how the business structures their payments, their may be extended time periods when the business does not bring in much revenue. Pay as you go can help the business owner to know how much they have to pay for premium each month and gives them the ability to cut hours when they are running low on cash.

Snow Removal

Snow removal businesses are obviously only located in certain areas of the country and only operate at certain times of the year. Even in Alaska, snow does not accumulate in Summer. For this reason, most snow removal businesses only collect revenue during the colder months of the year. These businesses are also heavily dependent upon the weather. With a traditional workers comp policy, the premium payments are based off of an estimated payroll from the previous year or a number of years. In this industry the man hours can be dramatically different from year to year. Pay as you go workers compensation insurance is perfect for businesses like this.