Control Your Costs by Controlling Your Insurance

1. Control your WC Premium

Your premium is based on a formula. It starts with your state-mandated rate and is multiplied by your “experience modification” or X-MOD. Your “X-MOD", in turn, is based on your worker’s comp claims experience. A high “X-MOD” hurts your competitive edge. It follows you from insurer to insurer. For example:


premium chart

2. Control Liability Premiums

Liability claims are not subject to the same strict formula as worker’s comp claims.
Your insurer will likely pay out for a slip-fall claim by a customer (average $25,000 in some studies), or a food illness event to one person ($2,000-$50,000, depending on severity; if numerous claimants from one meal, much higher). In either case, your insurer will have lost a lot of money on your policy, and your renewal costs will increase. Count on that.
A food illness event might be paid in full by insurance, but your reputation? With Yelp and more immediate word-of-mouth,… your reputation and business would suffer. Can you prove that you are doing the right things to avoid a food illness event?
There are a myriad of low likelihood but awful cost events-- A customer injury, such as a fall. A fire? An armed threat? Have you just taken care of basics?

3. Get a professional assessment of your risks.

Call Sonoma Safety at 707/364-8269 or email us at
Sonoma Safety will help reduce your insurance costs by

We have an electronic program to send you, which comes with one hour free consultation, or we can conduct an on-site evaluation.

“Workers compensation is a controllable cost”; Employers leave thousands of dollars on the table. “Companies typically spend 30% of their risk management dollar on workers’ compensation, according to the RIMS 2008 Benchmarking Survey, but most managers are unsure how they can reduce these costs,” said Mason Power, GM of Advisen.”