5 Tips for Choosing Workers Compensation Insurance for Tech Companies
Workers comp plays an important role in helping tech companies maintain and grow their business. Having coverage and services in place that are designed specifically to address the unique risks facing technology companies can be a competitive advantage for your tech firm. Having them might help tip the decision in your favor when prospective clients are considering who to award a contract to, or even help convince potential investors your company is a good risk. Stakeholders in your business appreciate it when you can demonstrate how your company and your employees are able to contain medical costs.
But it’s important to choose the right insurance provider. Here are five things to look for in a technology workers compensation insurance carrier:
1. Alternate employer coverage. Your customers may require an endorsement of your policy with alternate employer coverage when you lease or loan your employees to work onsite at their location. This endorsement applies your Workers Compensation and Employers Liability coverages as though your customer is insured under your policy for injury to those leased or loaned employees. Travelers will not ask any other insurer of your customer to share with us a loss covered by the endorsement.
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2. Blanket waiver of subrogation. Before you can sign a new contract with a customer, they may require you to waive your right of recovery against them in the event one of your employees suffers bodily injury that your customer may be partly responsible for.
In most states, Travelers can endorse our policy to provide a blanket waiver of our subrogation rights against your customer, to the extent that such waiver is required by your written contract that is signed prior to the loss.
3. A nationally accredited industrial hygiene laboratory. If your employees develop respiratory issues in your new manufacturing facility, an industrial hygiene analysis can help you identify the cause so you can take corrective steps. Look for a carrier that can help guide your business with extensive experience and capabilities in the areas of industrial hygiene and workplace safety.
Travelers Industrial Hygiene (IH) Laboratory is accredited by the American Industrial Hygiene Association and understands evolving IH issues, helping customers evaluate and improve their employees’ occupational health.
4. Medical cost containment strategies. If your workers comp costs are increasing significantly, but the amount and type of injuries occurring at your business have remained the same, you might suspect that medical providers are billing incorrectly. You’ll want to find a carrier that has the resources and systems in place to identify areas where you can save.
Travelers' Specialized Medical Audit and Review Team (SMART) of more than 40 professionals delivers a higher-level, more detailed review of medical bills than an automated medical payment system can provide. SMART, combined with other Travelers medical bill management strategies, has contributed to an average of 61 cents in savings for every medical dollar billed.
5. Online resource for injured employees. A workplace injury can create questions about medical treatment for injured employees. Employers need an easy, efficient process for employees to seek medical advice and get answers to their questions. Technology company employees may appreciate the transparency into the workers compensation claim process that the online portal offered by Travelers can provide.
Working with an insurance provider that is familiar with technology companies can help protect your business before, during and after a workers compensation claim. As your technology company grows, it may face increasingly complex workers comp claims that may indicate the need for an insurance provider with stronger expertise in technology business risks. Contact your agent or broker to discuss the best carrier to provide workers comp to your tech firm.
