There are several factors that can have an effect on your firm’s renewal premium. The first item to point out is the renewal premium is considered an estimated premium. This is because the policy is audited at the end of the policy period and the premium is either higher or lower based on the actual salaries. However, there are other factors that can affect a policy premium.
Are the owners included in the workers’ compensation policy? If so, this can increase the premium. In some states, if your firm has a workers compensation policy, the owners can be excluded from the policy. If the owners are included there is a specific cap for the salary that the owner can include in the policy.
Does your firm have employees in multiple states? This can change the premium, based on the state the employee is domiciled. If your employees are working from home in a different state this does need to be reflected in the policy as well.
Your firm’s policy may have a deductible included in the policy; this can lower the premium for workers’ compensation. Also choosing the designated medical provider can lower the premium as well.
Claims can have an effect on the workers’ compensation premium. Of course, this will depend on the amount of the claim and if there are multiple claims. Given that most architecture and engineering firms are considered office type jobs, claims do not happen frequently.
Specific endorsements added to the policy can increase the premium as well. The most common for architecture/engineering firms is waiver of subrogation. Another endorsement for workers compensation is the stop gap endorsement that can add premium to the policy.
If you have any questions about what effects your firm’s workers compensation renewal premium please call, or email, your Professional Underwriter agent for assistance.