As you are probably aware your practice's workers' compensation insurance rates are based on the total payroll of your practice. However, it is less widely recognized that salaries of corporate officers can be significantly limited in many premium calculations. While a physician may receive high compensation it is possible that not all of that compensation will be included in the premium calculation simply because the physician is an officer of the corporation. This provides a special opportunity to physician practice groups because, in most groups, it is the physicians who receive the highest compensation. Including the full amount of physician compensation can significantly increase your practice's workers' compensation premiums. Being certain that your physicians are officers of your corporation can provide significant savings. Because state laws differ and because the rules vary depending on the type of entity through which you practice you should contact us, your attorney or your insurance agent for details.
Saving Money On Workers' Compensation Insurance
This article was edited and reviewed by FindLaw Attorney Writers | Last reviewed March 26, 2008
This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw’s team of legal writers and attorneys and in accordance with our editorial standards.
The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area.
Was this helpful?