Common Workers Compensation Issues for Small Businesses
Avoid making these workers comp mistakes.
As a small business owner, you are responsible for securing workers compensation insurance to protect your staff. Unfortunately, this form of coverage can be very confusing, and many business owners make mistakes when securing and managing their policies. Here are some of the common mistakes that you should watch out for.
- Code Misclassifications
When you secure workers compensation insurance, you need to classify your employees and your type of business. Failing to apply the correct classification codes can result in you securing insufficient coverage or overpaying for workers compensation insurance. Unfortunately, with over 700 codes to choose from, misclassification is far more common than you might think. If the code classification process confuses you, then you should work with an experienced workers compensation advisor to ensure that you aren’t doing your employees or business a disservice.
- Inconsistent Payroll Reporting
Your workers compensation insurance premiums are partially based on your company’s payroll information. Unfortunately, many businesses fail to update their payroll information regularly. This can conceal the hiring or release of employees, making it impossible for your insurance provider to adjust your coverage and premiums accordingly. Staying up to date with your payroll reporting will ensure that you have adequate coverage to address your risks.
These are two of the most common workers compensation insurance mistakes made by small business owners. Do you have questions about this form of commercial coverage? If so, then contact the experts at Club Agency Insurance Brokerage in Garden City, New York. Our dedicated team is eager to assist you with all your coverage needs today.