Get to know the basics of workers comp insurance.

You might. Specific coverage requirements vary by state, and generally depend on how many employees you have in your company.

It’s easy. Simply get in touch with your insurance agent, and let them know you’d like Missouri Employers Mutual as your workers compensation carrier. They’ll take it from there. Don’t have an agent? Click here to find an agent near you.

Premium is calculated based on three factors:

• Your company’s total payroll, often called remuneration as it includes all forms of compensation
• Your employee job classifications
• Your experience modification factor, or e-mod

Your e-mod, or experience modification factor, is one of the primary measurements we use to determine what you pay for coverage. It is calculated by the National Council on Compensation Insurance by comparing the expected losses within your industry with your actual losses. If your losses are lower than expected, your e-mod will be less than 1.00, which will reduce your premium. If they are greater than expected, your e-mod will be greater than 1.00, increasing your premium.

Most states use the NCCI’s e-mod calculation, but your specific calculation and e-mod eligibility requirements may vary.

A loss ratio is your total losses, or claims expenses, divided by the audited premium. The better your claims experience, the lower your loss ratio.

Remuneration, commonly called payroll, is another key used in calculating your premium. It includes wages, commissions, bonuses, overtime pay, holiday pay, vacations and sicknesses, payment for piecework, value of housing, cafeteria plans and other forms of compensation.

The best way to control your premium cost is to build a safety culture in your organization and prevent injuries in the first place. Check out our safety resources as a starting point to helping your employees do their jobs safely — and with confidence.

If injuries do occur, managing claims costs can help you keep your e-mod low. Programs like return to work, telehealth and drug and alcohol testing can reduce the cost of claims and lower premiums over time.

The Certificate of Insurance, or COI, is evidence that your workers compensation is valid and currently protecting your employees. It shows the name of the certificate holder, the policyholder, insurance company, policy number, type of insurance coverage and policy effective dates. The COI will also indicate whether the owner is covered by the policy. It’s the certificate holder’s responsibility to ensure this certificate is up-to-date and signed. 

Not always. For an injury to be covered under your workers compensation policy, the injury must arise from and have occurred within the scope of the employee’s job duties.

Under very specific conditions, yes. For occupational diseases to be covered by a work comp policy, the disease must have arisen out of the scope of the employee’s normal job duties. If work-related exposure is found to be main cause, and meets the requirements of an injury, it may be covered. If work is merely a triggering or precipitating factor, the condition will likely not be covered under a work comp policy.

Most states require workers compensation information to be posted in a common area. To download the posters required for your state, visit our virtual claims kit.