Today, I’m sharing some valuable information about saving money on your workers’ compensation insurance. Understanding a key factor called “loss cost modifiers” can help you determine if you’re paying too much. Read on to learn more about workers comp savings!
What are Loss Cost Modifiers?
When it comes to workers’ compensation insurance, some states have fixed rates for everyone in the same job category. However, in states like Pennsylvania, insurance companies can charge different amounts based on the type of work and risk level. This is where loss cost modifiers (LCMs) come into play.
Decoding LCMs for Workers Compensation:
LCMs adjust the base rates for your workers comp class code, ultimately affecting the premium you pay. They reflect how much more or less you’re paying compared to the standard rate.
Understanding LCMs can lead to Workers Comp Savings
Let’s take a look at the LCMs for insurance companies writing policies in Pennsylvania. The Travelers Casualty Insurance Company of America, for instance, has an LCM of 1.015, which is about as low as you can go – insurance companies don’t hand these rates out easily. On the other hand, the Travelers Property Casualty Company of America has an LCM of 3.29, indicating much higher rates than average. These are extreme examples, but there are other LCMs that can fall anywhere between these two extremes.
In Pennsylvania, the State Workers Insurance Fund has the highest LCM at 3.716.
How to Find Your LCM:
Finding your LCM is quite simple. You can search online using keywords like “Pennsylvania workers’ comp LCMs.” This will lead you to publicly available spreadsheets or databases. Make sure to note the exact insurance company listed on your policy to get accurate results. If you’re unsure, an independent insurance broker can assist you in finding your LCM and helping you make informed decisions.
Please don’t hesitate to reach out to us directly if you’re having trouble finding your LCM.
Unlocking Workers Comp Savings
If you discover that your LCM is significantly higher than the average, it suggests that you may be overpaying for workers’ compensation insurance. This is particularly relevant if you work in relatively lower risk industries such as restaurants or retail. For example, if you have an LCM of 3.0 but no claims history, you’re likely paying much more than others in your industry. In such cases, it’s a great idea to reach out to an independent broker who can help you explore alternate insurance carriers and potentially save you money.
Contact Stillwell Risk Partners for Assistance
At Stillwell Risk Partners, we specialize in workers’ compensation. We understand the complexities of insurance, and we’re here to help you navigate them. If you don’t have time for research or need expert advice, simply contact us. We can provide insights on your LCM and determine the best available rates. We regularly find our clients 25% – 50% savings on just their Workers Comp policies.
Conclusion
By understanding loss cost modifiers, you can unlock significant savings on your workers’ compensation insurance. Start by researching LCMs specific to your insurance company. If you find that your LCM is higher than average, don’t worry! Stillwell Risk Partners is here to assist you. Contact us today to explore your options and ensure you have the right coverage at the best rates. Save money on workers’ comp insurance and take control of your business’s financial well-being!