Guide on How to Shop your Workers Comp Rates:

In the past I have spoken to clients who were under the impression that workers comp insurance rates were set in stone by the State and so, therefore, there would be no reason to shop around for better rates. Although there are recommended rates for each class of business there is no one set price. Rates can vary from one carrier to another. Considering the rising cost of California Workers Comp insurance it is definitely a wise decision to shop rates and make sure you are not overpaying. Here is a list of what you will need to shop your Workers Comp rates:
1. You will need your FEIN #. Carriers do not want to present duplicate quotes to the same business so they keep track of whether they have already quoted you by your tax identification number.
2. If you are currently insured you will need to present proof of your prior claims history. In the world of Workers Comp this proof is known as your “loss runs.” You can request loss runs from your current Broker, or, if you do not wish to make him or her aware that you are shopping elsewhere you can request them directly from the carrier. Allow a good few days and perhaps even up to a week to receive your loss runs. All insurance carriers are required by law to provide you with these.
3. If you’ve had a loss be prepared to explain what occurred in detail. Tip: if you have taken any measures to prevent further losses be sure to mention that to the Broker as insurance carriers love to hear that and will look more favorably at quoting your insurance.
4. Be prepared to describe the details of your business operations and what duties your workers perform.
5. Be prepared to have an estimate of what you think your annual payroll will be for the coming year. Once you have that figure break it down by what you estimate the payroll to be for your different classes of employees. In many industries if your clerical employees are physically separated from the main class of employees you can classify them separately on your workers comp and pay a lower rate for them. So, if you have an auto body shop that does some auto repair work and you have one full time clerical worker you will want to come up with an annual payroll figure for your Auto Body Techs, for your Auto Repair Mechanics and for you Clerical workers.
6. Each class of employee is given a workers comp code. Your Broker should provide that information, but if you would like to be more hands on you can research the classification codes on your own on the Workers Compensation Insurance Rating Bureau’s website. Here is the link where you would go to research classifications: read more

Workers’ Compensation

Workers’ compensation coverage pays for medical care and physical rehabilitation of employees injured at work and helps to replace lost wages while they are unable to work. Additionally, this coverage protects an employer from being sued by an injured worker in most cases.

Sparrow General can help your business find complete solutions to your unique workers compensation insurance needs. We’ll find solutions that create safer and more productive workplaces, more confident and secure workers and overall savings you’ll see on the bottom line. read more

Commercial & Business Insurance

Business insurance professionals, serving California

Insurance coverage that protects your company – so you can get back to business

Sparrow General Insurance Agency knows business in our communities – Our clients all around California. As an independent insurance agency, we take pride in reviewing your options with multiple insurance companies and comparing protection and prices to find the best value for your business.

We’re proud members of the Hermosa Beach, Redondo Beach, Manhattan Beach, Torrance, El Segundo, Hawthorne, Lawndale, Gardena, Palos Verdes, San Pedro, Harbor City, Carson, Long Beach, Los Angeles, Beverly Hills, Bellflower, Cerritos, Artesia, Whittier, Covina, La Puente, San Dimas, Brea, Ontario, Chino Hills, Anaheim, Huntington Beach, Garden Grove, Cypress, Newport Beach, Costa Mesa, Mission Viejo, San Juan Capistrano, Dana Point, Burbank, Van Nuys, Sherman Oaks, Encino, Woodland Hills, Agoura Hills, Calabasas, Winetka, Northridge, Granada Hills, Chatsworth, Thousand Oaks, Westlake Village, Moorpark, Ventura, Sylmar, West Hills marketplace, and we’re committed to being an advocate for you and your business in times of need. read more