Healthcare professionals dedicate their careers to caring for others — but many medical practices are paying too much to protect their own teams. Workers Compensation Insurance is one of the largest overhead costs for clinics, yet most are unaware that they’re overpaying due to incorrect class codes, outdated payroll estimates, or unfavorable experience modifiers. At Skyscraper Insurance, we help healthcare practices identify savings opportunities, correct costly errors, and secure Workers Comp programs tailored to their specific risks. If you’re running a medical office, dental clinic, or therapy practice, now is the time to make sure you’re not spending more than you need to.
Understanding How Workers Comp Premiums Are Calculated
Workers Compensation premiums are based on a few key factors — your payroll, class codes, and your experience modification factor (also known as an “experience mod”). Class codes determine the level of risk associated with each employee’s job. For example, a dental assistant and an office administrator may fall under different codes, and using the wrong one can inflate your costs unnecessarily. Many practices unknowingly use incorrect codes or leave outdated classifications unchanged, resulting in higher premiums.
The experience modifier, on the other hand, is a score assigned to your practice based on your claims history compared to similar businesses. A mod of 1.0 is considered average. If your practice has fewer and less costly claims than average, your mod will be below 1.0, and you’ll pay less for insurance. If your claims history is worse than average, your mod goes above 1.0, and you’ll pay more. Understanding how to manage and reduce your experience mod is one of the easiest ways to lower Workers Comp costs over time.
Common Reasons Healthcare Practices Overpay
- Incorrect Classifications – Using a higher-risk class code than necessary can instantly drive up your rates. Many healthcare offices lump all staff under a single category when some positions — like receptionists, billers, or lab technicians — should be rated separately.
- Payroll Miscalculations – Estimating payroll too high during renewal leads to overpaying premiums throughout the year. If your workforce fluctuates, consider a Pay-As-You-Go Workers Comp plan that adjusts based on actual payroll.
- Outdated Experience Mods – Errors in claims reporting or failure to contest inaccurate losses can keep your mod higher than it should be. Reviewing your mod annually can uncover mistakes that impact your rates.
- Lack of Safety Programs – Even small safety improvements can reduce claim frequency and severity. Training staff on ergonomics, proper lifting, and infection control can make a measurable difference in your Workers Comp costs.
- Renewal Inertia – Many clinics simply renew their policy each year without shopping or reviewing carrier options. Markets change, and healthcare is a specialty class that deserves specialized underwriting.
The Hidden Impact of Overpaying
When healthcare practices overpay for Workers Comp, it’s not just about higher premiums — it affects profitability, staffing budgets, and even patient care quality. Every dollar spent unnecessarily on insurance could be reinvested into new equipment, staff training, or facility improvements. Overpayment often comes from oversight, not intentional error, which makes a professional review even more valuable.
At Skyscraper Insurance, our team specializes in healthcare risk management and understands the nuances of medical practices. We work with top-tier carriers that offer preferred rates and underwriting for healthcare professionals, ensuring your coverage matches your actual risk exposure — not a generic business profile.
How to Lower Your Workers Comp Premiums
1. Audit Your Class Codes: Review your current policy and make sure each employee is classified correctly. This alone can yield significant savings.
2. Review Your Experience Mod: Request a mod analysis from your broker to confirm all past claims are closed, accurate, and fairly reported.
3. Implement a Safety Program: Preventing workplace injuries is the most effective long-term strategy. Offer ergonomic assessments, staff training, and proper lifting equipment.
4. Explore Pay-As-You-Go Billing: Align your premiums with real-time payroll, improving cash flow and reducing audit adjustments.
5. Partner with a Healthcare Specialist: Work with a broker who understands your industry and can negotiate with carriers that cater to medical risks.
The Skyscraper Insurance Difference
At Skyscraper Insurance, we don’t just sell policies — we deliver insights that reduce costs and strengthen coverage. Our dedicated healthcare division works with medical offices, dental practices, urgent care centers, and therapy providers to design customized Workers Compensation programs that reflect their operations accurately. We use detailed payroll audits, risk analysis, and safety training recommendations to help practices qualify for better rates and experience mods.
We also help practices integrate Workers Comp with other key coverages — such as Professional Liability, Cyber Insurance, and Employment Practices Liability — to create a comprehensive risk management plan that grows with your business.
Take Control of Your Premiums Today
Your Workers Comp rate shouldn’t be an unavoidable expense — it should be a strategic advantage. By correcting class codes, improving safety, and working with the right partner, you can reduce premiums and protect your people more effectively.
At Skyscraper Insurance, we care for the caring professionals who keep our communities healthy. Let our experts help you uncover hidden savings and build a stronger, smarter coverage plan for your practice.
👉 Request a Clinic-Specific Comp Review today and find out how much you can save this year.
