How to Get the Cheapest Workers Comp Insurance for Property Managers | WIMC

May 22, 2025

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How to Get the Cheapest Workers Comp Insurance for Property Managers

When you're a property manager, keeping costs down while maintaining a safe and functional work environment is paramount. One of the significant expenses in the property management business is workers' compensation insurance. Workers' comp insurance is designed to cover the costs associated with employee injuries that occur on the job. For property managers, understanding how to secure the cheapest workers' comp insurance without compromising coverage is vital.

This comprehensive guide will provide you with strategies and insights on how to get the most affordable workers' compensation insurance for property managers. We’ll cover everything from understanding workers’ comp insurance to exploring ways to minimize your premiums.

Understanding Workers’ Compensation Insurance for Property Managers

Workers’ compensation insurance is a type of coverage that provides financial protection for employees who are injured while performing work-related duties. It covers medical bills, rehabilitation costs, lost wages, and, in some cases, death benefits. As a property manager, you may have employees who are regularly exposed to physical risks, such as maintenance workers, janitorial staff, or on-site security personnel. Workers’ comp insurance protects both your employees and your business.

While workers’ compensation is crucial for protecting employees, it can be a significant expense for businesses. The cost of coverage varies based on several factors, including the nature of the work, the number of employees, your claims history, and your location.

To reduce your workers' comp insurance costs, it’s important to understand the elements that influence your premium and how you can strategically manage these factors.

Factors That Affect the Cost of Workers’ Comp Insurance

There are several key factors that insurance providers use to calculate your workers' comp premiums. Understanding these variables can help you identify areas where you can make adjustments to lower your premiums.

Classification Codes

Workers' comp insurance is based on classification codes that correspond to the type of work being done. Property managers with employees in high-risk jobs, such as maintenance or construction workers, will face higher premiums than those who manage office buildings or residential complexes with lower-risk employees. The classification code assigned to each employee can significantly affect the overall premium.

Payroll Size

The size of your payroll is one of the primary factors that insurers use to calculate premiums. The more employees you have, the higher your payroll, and therefore, the higher your premiums. However, you can manage this by only insuring the employees who need coverage or by seeking out policies that allow for more flexibility based on your payroll size.

Claims History

Insurance providers look at your claims history to assess how much risk they will be taking on by providing coverage. If your company has a history of frequent or costly workers' compensation claims, your premiums will likely be higher. Maintaining a safe work environment, implementing effective safety training, and managing claims efficiently can help reduce your claims history and, in turn, your premiums.

Industry and Location

Different industries have varying levels of risk. Property managers in areas with higher crime rates or in regions prone to natural disasters may face higher premiums. Similarly, workers' comp insurance premiums vary by state and even by region within a state. Some states have more stringent requirements or higher rates, while others offer more affordable coverage.

Experience Modifier Rate (EMR)

The Experience Modifier Rate (EMR) is a multiplier that adjusts your workers’ comp premiums based on your company’s claims history compared to other businesses in your industry. If you have a good safety record, your EMR will be lower, resulting in lower premiums. On the other hand, a higher EMR will increase your premiums. Keeping a close eye on your EMR and working to improve it over time can help you save money on workers’ comp insurance.

Steps to Secure the Cheapest Workers’ Comp Insurance for Property Managers

Now that we understand the key factors that influence the cost of workers’ comp insurance, let's explore some strategies property managers can use to secure the most affordable coverage.

1. Shop Around for Quotes

One of the easiest ways to find the cheapest workers’ comp insurance is by getting multiple quotes from different insurers. Not all insurance providers use the same rates or offer the same coverage options. By comparing quotes from several different carriers, you can identify which one offers the best deal for your needs.

It’s important to make sure you’re comparing similar coverage levels. If one policy offers significantly lower premiums, check if it provides the same coverage, exclusions, and limits. Sometimes, a cheaper policy may come with reduced benefits or exclusions that could leave you exposed in the event of a claim.

2. Review and Update Your Employees' Classifications

The classification of your employees plays a large role in determining your workers' comp premiums. Ensure that your employees are classified correctly. Property managers sometimes make the mistake of misclassifying employees, which could lead to overpaying for coverage.

For example, janitorial staff might be classified under a higher-risk category than necessary. By reviewing the work duties of your employees and ensuring their job roles are accurately classified, you can potentially reduce your premiums.

Additionally, regularly update your employee classifications, especially if their job duties change. If an employee transitions into a lower-risk role, their classification can be adjusted, which may lower your premiums.

3. Maintain a Safe Work Environment

A key factor in lowering your workers’ comp premiums is maintaining a safe and healthy work environment. Insurance providers offer lower premiums to businesses that implement safety programs and minimize the risk of injury. As a property manager, this could mean conducting regular safety training for your staff, addressing hazards promptly, and enforcing safety protocols.

By investing in safety measures, you can reduce the number of workplace injuries and workers’ comp claims, ultimately lowering your premiums. Additionally, many insurance companies offer discounts to businesses that take proactive steps to reduce risks.

4. Implement a Return-to-Work Program

A return-to-work program can help reduce the cost of workers’ comp insurance by getting injured employees back to work sooner. This program focuses on helping injured workers return to their duties in a safe and effective manner. Insurance companies appreciate employers who make an effort to help employees return to work, as it helps reduce the cost of long-term claims.

A well-designed return-to-work program involves collaborating with healthcare providers to facilitate the recovery process and offering modified duties to injured workers if they are unable to perform their full duties. Not only does this reduce your workers' comp costs, but it also helps keep employees engaged and reduces the overall impact of workplace injuries.

5. Consider Group or Association Plans

Some property managers can benefit from joining group or association workers’ comp plans. These plans are typically organized by trade groups or industry associations, and they allow businesses to pool their resources together for better rates. Joining a group plan can be especially beneficial for smaller property management companies that may not have enough employees to secure the best rates on their own.

By joining a larger pool, you may be able to take advantage of bulk buying power, which can result in lower premiums. Be sure to research any available association plans in your area to see if they could benefit your business.

6. Pay Your Premiums Annually

Insurance premiums are often calculated based on your payroll, and many providers offer payment plans, including monthly, quarterly, or annual payments. While monthly payments may seem more manageable, paying your premium annually could offer a discount.

Insurance companies typically charge an additional fee for installment payments, so if you can afford to pay your premium upfront, you may be able to secure a lower rate. It’s also worth noting that annual payments give you a clear understanding of your costs for the year, which can help with budgeting.

7. Work with an Insurance Broker

If you’re struggling to navigate the complexities of workers’ comp insurance, consider working with an insurance broker who specializes in property management. A good broker can help you find the best coverage at the most affordable price by leveraging their knowledge of the industry and their relationships with multiple insurers.

An experienced broker can also help you identify coverage gaps and suggest ways to minimize your premiums while maintaining the necessary coverage for your employees.

8. Regularly Review Your Coverage

Once you’ve secured workers’ comp insurance, it’s essential to regularly review your policy. Your business needs may change over time, and your policy should reflect those changes. For instance, if you hire more employees, expand your property portfolio, or shift into new property management sectors, your coverage should be adjusted accordingly.

Regularly reviewing your policy ensures that you’re not overpaying for unnecessary coverage or underinsured in certain areas. Periodic reviews with your insurer can help you stay on top of your costs and ensure that your workers’ comp insurance remains cost-effective.

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