3 Ways To Reduce Church Workers Compensation Insurance Premiums
If you are trying to figure out how to save money and reduce church workers compensation insurance, we will show you a few tricks to accomplish this task.
As churches attempted to recover from covid-19, religious organizations are trying rebuilt.
As churches begin the building process, cost for workers compensation insurance can rise unexpectedly.
It is important for churches to understand how workers compensation insurance works, so they can potentially save tens of thousands of dollars.
It is our number one goal to save your church money, and we want to help keep your employee safe from injury.
How To Reduce Church Workers Compensation Insurance: Employee Payroll
When looking to reduce church workers compensation insurance premiums, it is important to review your payroll and how the church insurance company is classifying your employees.
A misclassified employee related to workers’ compensation insurance can cost your church thousands of dollars.
Most church staff fall into three categories of classification codes:
- 8810 – Clerical office employee
- 8840 – Pastoral staff
- 9015 – Janitorial, lawcare, church maintenance staff
The rates for these three class codes, can produce a significantly different overall cost to your churches workers’ compensation program. It is important to ensure your payroll totals are correctly classified when you complete your annual audit.
Payroll in the 8840 class code can be rated from $0.45 to $1.15 per 100 of payroll where the 9015 class code may produce a rate between $7.00 to $16.00 per 100 of payroll.
Here is an example of the cost differences
Workers’ Compensation Insurance: 8840 Class Code
$250,000 In Annual Payroll
$0.85 Per 100 of Annual Payroll
$2,125 – Total Annual Premium
Workers’ Compensation Insurance: 9015 Class Code
$250,000 In Annual Payroll
$12.50 Per 100 of Annual Payroll
$31,250 – Total Annual Premium
Turn Down The Heat And Reduce Church Workers Compensation Insurance: Collect Contractor Certificates
Does your church hire outside companies to provide you with needed services. These services can include the following:
- Janitorial services
- Lawn Care professionals
- Roofing contractors
- Sound crew
- Professional musicians
The list of outside companies can be endless. Before you allow one of these companies to work onsite at your church property location, it is critical to obtain proof of insurance from all outside organizations.
If you forget to obtain the needed insurance, and have them list your church as an additional insured on their policy, your insurance company will add them onto your workers’ compensation insurance policy. These charges will be significantly higher and they will require payment in full once your audit is completed.
By collecting these certificate of insurance you can immediately reduce church workers compensation insurance cost. These are hidden cost most churches are unaware will come their way. If you are thinking of a major church construction project, it is vital to collect everyone’s proof of insurance.
Implement Church Risk Management Procedures
While safety may not be on a churches number one priority list, as your church grows you may qualify for an experience modification factor. This rating factor can either save your church money or end up costing you thousands in additional premiums.
When looking to reduce church workers compensation insurance, having a safety minded focus is important.
We understand that church employees get into a lot of different situations, and these job duties can include some pretty out of the ordinary task. We have seen bookkeepers climbing 20 foot ladders to hang christmas lights, to pastors climbing on roofs trying to do a quick repair job.
It is important to include safety meetings as part of your staff meeting. We provide our church clients with access to gotsafety at no cost to them. It provides thousands of different safety topics you can cover with your staff.
Set up ergonomic workstations
Your employees matter to you and to the insurance company. Just like you don’t want your employees to get injured, the insurance company doesn’t want to pay out a claim for an injury that could be preventable.
When you think about your computer workstation, think about purchasing chairs, keyboards, and mouse that are ergonomically correct. The products can help reduce carpal tunnel injuries and back pain.
Obtaining apple watches for employees, can serve as a reminder for employees to get up each hour and stretch. This simple reminder helps reduce stress and keeps our bodies moving.
We Are Here To Help Reduce Church Workers Compensation Insurance Premiums
Would you like us to conduct a complete church insurance review. Our church insurance agents have the experience you need to ensure your organization is protected in the event of a loss.
We help churches with the following coverages church building insurance, workers’ compensation insurance, general liability insurance, pastoral counseling coverage, directors and officer insurance, employment practice liability insurance, religious beliefs coverage, abuse and molestation coverage, church auto insurance, group health insurance and more.
Don’t wait any longer, reduce church workers compensation insurance asap so you can start saving money.
Our Church Insurance Brokers are looking forward to hearing from you so we can provide you with an insurance quote.