Recession Proof Your Workers Comp Policy

A Question From One of the Blog Readers - How do I recession proof my workers comp policy?

The easiest way involves the payroll that your company is reporting for your WC policy. If your company has experienced layoffs, reduction of hours, or any reduction of payroll, make sure the auditor at the end of the year payroll audit has the documentation to reduce your payroll.

If you are being quoted for a new policy, it is not advisable to use the payroll figures from the year before as a basis for the current year's payroll if you are planning a reduction in hours or personnel. If the payroll is overestimated, you are basically giving the insurance company an interest-free loan that will be recovered over a year later at the audit.

Check the next post to see a way to accidentally increase your premiums by 300% or more.