Correct Job Classification and Cost Containment are Two Areas to Reduce Premium
Workers compensation insurance is a necessary product when you have employees with each state mandating this type of coverage. In Colorado, there are several key areas to consider to potentially reducing your premium if you're a cannabis operation.
The correct job classifications of your employees is critical. There is a significant difference in premium for employees working at a store versus a cultivation facility, bakery, or extraction company. In fact, Greenpoint Insurance Advisors, LLC was the first insurance broker to have the workers compensation insurance industry recognize a different classification code for employees working at a extraction company as opposed to other manufacturing or bakery job classifications. This change resulted in certain clients saving thousands of dollars on their insurance premiums in Colorado.
Another area to reduce your insurance premium is through a "Cost Containment" program. Essentially, a program that incorporates certain safety standards within the company that leads to a percentage reduction in your premium. You are awarded for making safety a number one priority.
Here is the six criteria below for setting up a cost containment program in Colorado:
- A formal declaration of a company wide safety policy
- A formal designation of a safety coordinator or safety committee
- Clearly defined safety rules and enforcement policy
- Documented new-hire and ongoing safety training
- Written designation of medical providers
- Written policies and procedures for claims management
Through Greenpont Insurance Advisors, LLC, we can help evaluate job classification and provide resources to help your cannabis operation set up a cost containment program.