Workers Compensation Insurance: Should You Use Your Payroll Company?
In recent weeks, I’ve had several conversations with business owners who have their workers compensation insurance placed through their payroll company. While this can be a convenient option, there are a few things to consider before making a decision.
Convenience
One of the main benefits of using your payroll company for workers compensation is convenience. Payroll companies often offer Pay As You Go options, which means that you can pay your premiums directly through your payroll process. This can help to avoid end-of-year audits.
Expertise
However, there are also some drawbacks to using your payroll company for workers compensation. First, payroll companies are not insurance experts. They do not have the same level of knowledge and experience as an independent insurance agent. This can be a problem if you need to make a claim or have any questions about your policy.
Advocacy
In addition, payroll companies are not advocates for their clients. If you have a claim, they will not be able to represent you or negotiate on your behalf with the insurance company. This can be a major disadvantage if you are facing a difficult claim.
Cost
Finally, it’s important to consider the cost of workers compensation insurance. In my experience, I have seen rates that are 10-15% lower when a policy is placed through an independent insurance agent.
What to DoIf you are currently using your payroll company for workers compensation, I recommend that you reach out to an independent insurance agent to discuss your options. An independent agent can help you to compare rates and find a policy that meets your needs. They can also help you to understand your policy and advocate for you in the event of a claim.
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We would be happy to help you find a workers compensation policy that meets your needs. Please contact us today to schedule a consultation.