Six Things Not To Do When You're In Need Of Workers Comp Insurance Coverage
Employers need to be careful when they're making plans and decisions regarding their workers' comp insurance coverage. Failing to have needed workers' comp insurance coverage can create a lot of headaches for business owners.
The following are six things not to do when you're in need of workers' comp insurance coverage.
Waiting too long to purchase the coverage you need
Your employees won't get any coverage for a claim if insurance wasn't purchased until after the incident in question occurred. This means that you shouldn't procrastinate about purchasing workers' comp insurance.
Procrastinating about workers' comp insurance could make it so that you're not meeting state requirements. Procrastinating can also make it so that your employees can't get needed financial assistance for a claim. Purchase workers comp insurance promptly when needed to avoid these issues.
Being unaware of pertinent workers comp coverage requirements in your state
Workers' comp insurance requirements are typically decided on a state level. This means that you need to be aware of what the workers' comp insurance requirements are in your particular state to be sure that you're meeting your responsibilities as an employer.
Making payroll projections that are not accurate
You will usually need to make payroll projections when you buy workers' comp insurance. Your payroll projections help in determining the amount of coverage you need for your company.
It's important to make accurate payroll projections or you may have to pay unexpected premium increases that can be hard on your company budget.
Failing to take advantage of discounts through training and workplace safety efforts
Workers comp insurance providers often offer discounts that you may be eligible for. Look into whether you can get discounts for investing in workplace safety programs or additional safety training classes for your employees to minimize your workers' comp insurance premium costs.
Being inaccurate when you're providing class codes for your employees
You need to provide class codes corresponding with the various job roles of your employees so that your workers' comp insurance provider can calculate your insurance costs.
It's important to choose these codes carefully to be sure that the premium amounts you're paying to correspond properly with job roles at your company.
Forgetting to notify your workers' comp insurance provider of important changes at your company
You need to understand how important it is to notify your workers' comp insurance provider of important changes at your company like increased hiring or added operations at your facilities.
These changes could alter your workers' comp insurance needs and costs, so you should be discussing them with your workers' comp insurance provider.