As a small business owner, you want to keep your employees safe on the job, but you cannot always prevent injuries. Workers compensation in Virginia is required for almost all companies and can vary quite a bit in cost. If you want to provide adequate coverage for your workers but still be able to manage expenses, consider these three factors that may affect your premium rates.
1. What is the Nature of Your Business?
Your industry may be the single biggest issue that determines your premiums. If you are in a dangerous or high-risk line of work, expect your premiums to be significantly more than someone who provides clerical or other administrative work that requires little to no physical activity.
2. How Many Past Claims Have You Had?
The safety record history of your business can directly impact the amount of your workers compensation in Virginia. If you have had few insurance claims filed, you can expect lower premiums than a company that has a higher number of work-related injuries.
3. Why Does Payroll Matter?
The other two factors speak more to the safety of your line of work, but your payroll also can influence premium amounts because it is part of the formula for calculating rates. A lower payroll amount may translate to lower premiums because you may have fewer employees to cover.
While you cannot change all of these factors, you can create a work environment that stresses safety in order to control rate increases for workers compensation in Virginia and keep your employees injury-free.