Even though it’s a high-risk industry, buying manufacturing workers compensation shouldn’t cost a fortune. Find an affordable policy that will protect both your company and your employees.
Why should you invest in workers’ compensation insurance for your manufacturing staff? Factory workers are used to handling complicated equipment that can throw off your carefully planned production schedule if it’s not operating properly, but luckily these employees know how important their work really is! Industrial facilities are naturally dangerous places, which means that no one should walk inside them without the right protection. This includes coverage and that includes WC coverage.
Manufacturing accidents happen all the time. And many injuries require medical attention. Who’s going to pay the doctor and hospital bills when they come due? A comprehensive workers’ comp policy will cover it all.
Coastal Work Comp Brokers serve as your workers’ compensation insurance broker and can get you a policy that is customized for high-risk, small or medium companies. When you’re ready for a change from lump sums or pay-as-you go plans that don’t fit in with budget constraints we can help find the best option available so all of those hardworking employees have peace of mind when it matters most!
Why Do Manufacturing Facilities Need Workers Comp?
Jobs in the manufacturing industry aren’t easy. Factory workers perform physically demanding tasks every day. Employees often stay on their feet the entire shift. They may even handle heavy machinery, sharp objects, or hazardous chemicals. It’s no wonder on-the-job injuries are common.
The most frequently reported manufacturing accidents are:
- Slips, trips, and falls
- Overexertion and fatigue
- Repetitive motion injuries
- Toxic substance exposure
- Machinery contact or entanglement
Manufacturing accidents often land workers in the hospital. Those who aren’t as lucky may even end up in the morgue. The bills after a work-related injury add up quickly. Would it be more cost-effective for your company to pay them out of pocket? A small business owner has their livelihood at stake when accidents do happen; without adequate insurance they are one bad occurrence away from being forced out of operation forever. At Coastal Work Comp Brokers, our workers’ comp covers expenses resulting from on-the-job incidents. These may include medical bills, lost wages, long-term disability, or funeral services.
Who Does Workers’ Comp Insurance Cover in Manufacturing?
Workers’ compensation protects all regular employees on your company payroll. It doesn’t matter if they work full-time, part-time, or seasonal. Eligible manufacturing workers include those in production, transportation, shipping/receiving, office admin, and management.
Insurance may not cover some people working at your factory, however. Those not included are independent contractors, subcontractors, or freelancers. Pretty much anyone receiving an IRS 1099 Form at the end of the year doesn’t qualify for benefits. Ensure these workers buy liability insurance before stepping foot inside your manufacturing plant. Otherwise, they could sue you for damages after sustaining an injury.
It’s also important to note that filing a WC claim isn’t grounds for instant approval. Coverage only applies to accidents that meet specific criteria. For example, the incident must happen at work and while performing job-related tasks. Most illnesses, personal injuries, and horseplay are not covered. Insurance companies investigate each claim to determine eligibility.
What Are the Four Types of Workers’ Compensation Benefits?
No two manufacturing accidents are alike. Even with adequate training, an employee can still injure themselves on the clock. And as the business owner, you are liable. Regardless of if the injury is mild or life-threatening, your company can expect a hefty bill.
Top 4 WC Benefits:
- Medical bills, including hospitalizations, doctor visits, medications, nursing care, and medical equipment
- Lost wages while the injured worker recovers
- Death benefits, such as funeral and burial expenses
- Pain and suffering
Factory owners often wonder if the benefits of workers’ comp insurance are worth the cost. The answer is always a resounding yes. Work injuries cost businesses across all industries over $171B in 2019, as reported by the National Safety Council. Imagine if your plant had to pay even a fraction of that amount. Investing in a WC policy from Coastal Work Comp Brokers today could mean the difference between financial success or bankruptcy.
How Is Employer Workers Compensation Calculated?
Insurers consider various details when identifying your premiums. Industry risk is at the top of the list. Manufacturing jobs are more dangerous than other sectors. As a result, you should expect higher premiums. Here’s the formula they use:
Class Code Rate (X) Employer Payroll per $100 (X) Experience Modification Rating (=) Your WC Premium
Every industry has a unique class code assigned by the National Council on Compensation Insurance (NCCI). The manufacturing industry has several designated codes. Some examples include 2021, 2501, 3064, and 4484. Companies may have more several class code.
Is Workers’ Insurance Expensive for Manufacturing Facilities?
Insurance providers classify manufacturing plants as high-risk. Assuming you are more likely to file claims than those in “safer” businesses. Since making money is a priority, insurers tend to charge higher premiums for this niche.
While the cost for coverage may seem high, you don’t want to be without it. Unless you have a crystal ball, you can’t predict when an employee will get hurt, and any accident can be costly.
Premiums vary depending on several factors. Your EMR, payroll, and accident history all come into play. Before you start, consider these questions:
- How many factory employees do you have?
- How much coverage do you need?
- And, how many incidents did workers report in the last three years?
- What on-the-job risks do your employees take?
Your answers will help you determine how much coverage to buy. There are lots of plans available, depending on your needs. Purchasing the right one now will keep your workers protected in the future.
Where Can Manufacturing Companies Buy Workers’ Comp?
Operating without WC coverage is never a good idea. However, it may also be illegal in some some states. Although manufacturing is a high-risk industry, it’s still possible to find an affordable policy. As a business owner, you have three places to look: private insurance, State Fund, and PEO.
Private insurance is where most manufacturing companies begin. These insurance brokers offer numerous policies, but they don’t always cover high-risk/high-mod industries. They may view you as too much of a liability.
State Fund offers coverage to anyone denied by private providers. Even if you have a lengthy claims history, they won’t turn you down. State Fund policies are usually bare-bones, and prepare yourself to pay extra for a mediocre plan.
PEOs are a great option for high-risk industries. You’ll enter into a co-employer contract with your broker. They pool all their clients together to get the lowest WC rates possible. If you want to save money, PEO is the way to go.
Are expensive premiums preventing you from buying a WC policy? Coastal Work Comp Brokers wants to help. As a PEO, we may be the perfect match if you:
- Wantto reduce your WC premium.
- Work in a high-risk industry.
- Are with State Fund.
- Were non-renewed by your current carrier.
- Have losses.
- Now have a gap in insurance.
- Have a high experience modification rating.
- Can’t afford a large deposit.
- Have 5-500 employees.
- Dread the annual audit.
Enter into a Partnership with a Trusted PEO
On-the-job accidents are not always preventable in the manufacturing industry. Thorough training can help mitigate risk, but it’s not a total solution. Workers’ compensation insurance protects employees and employees from costly medical bills. Count on Coastal Work Comp Brokers to find the right plan for your factory.
We are a PEO specializing in high-risk manufacturing companies. It’s our mission to find you the best policy for the lowest price. We can lower your premiums by 30-40%, and we never settle for anything less. Let us get you out of State Fund and find great WC coverage, even if you have insurance gaps or losses. Whether you have a a new venture, ahigh-mod rating, or need multi-state risk coverage, we are here to help.
What can we do for you? Our pay-as-you-go plans ensure you only buy coverage you actually need. Can’t afford a huge down payment? We don’t have one! Tired of dealing with HR paperwork? We provide both human recourses and risk/claims management at no extra cost. And you’ll never have to worry about an annual audit again.
Also, because you’re in manufacturing, you might be interested in:
Ready to lower your premiums? Connect with us online or call us today at 1800-411-0733 to find the best workers’ comp option for you.
idenWhy should you invest in workers’ compensation insurance for your manufacturing staff?