As discussed in How to purchase workers' comp, you can obtain workers' compensation coverage through an insurance company, absorb claim costs through self-insurance, or buy into your state’s assigned risk fund. You can also find an insurance broker who will take a nonbiased look into all carriers and make recommendations for the best fit.

Regardless of whom you purchase coverage from, make sure they have your best interests in mind so that you get a comprehensive policy at a fair cost.

Experience counts
Workers' compensation providers should be experienced with all federal and state regulations, and should understand how your specific industry will impact your policy. In addition, you want to work with companies that have written workers’ compensation policies for years. That way, you know they’ll still be around five, ten, or even twenty years down the line when you need them.

Experience will come in handy when it comes to finding available discounts to keep your costs low. Understanding the challenges facing your business will help insurers advise you on what programs and initiatives to investigate to make your premiums easier to bear.

One way to gauge the experience and quality of a provider is to check with outside organizations who rate insurance companies. Nonprofit entities like A.M. Best Company or Standard & Poor’s rate insurance providers based on customer satisfaction, number of complaints filed, and industries they work with.

Quality customer care
Dedicated customer care is essential, particularly when you have to submit claims. Check how potential insurers accept claims – is it by fax, e-mail, or postal mail? What should you do if an injury takes place after hours? You must feel confident that the provider will stay on top of your claims and get the process moving immediately.

While a quick response to claims is important, 100% accuracy is also critical. Submitting a faulty claim could negatively impact your premiums for years. Look for providers with a strong attention to detail so that you never have to worry about the validity of your claims.

If you purchase insurance through a commercial insurance company, you’ll typically have an agent assigned to your company. In addition to being well schooled in your industry and all local regulations, your agent should take the time to learn about your business in order to help you find the best ways to keep your costs manageable. If you have employees who work in other states, your provider should be knowledgeable about the insurance regulations in those states as well.

Audit documentation
When providers furnish you with your insurance quotes, review each copy carefully to uncover inconsistencies and ensure that they use the appropriate classification codes for each employee. If you notice discrepancies, your provider should immediately adjust the problem.

This level of detail is especially important when the time comes to renew your policy. If you ever notice a big increase in your premiums from year to year but you’re unsure what caused the increase, request a written explanation from your provider. It’s possible that the rate spike was just an error, but rates do change over time so your premiums may go up.