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4 Workers' Compensation Insurance Tips for Small Businesses
by Anica Oaks Wed, 06/08/2016 - 08:16
As you add more employees to your payroll, it will become necessary to provide them with worker's compensation insurance in case they become injured while on the job. As you fulfill this requirement, you will want to make sure that you sign up for the right policy not only so you can keep your costs low, but also so you can ensure that your business is fully covered in the event that one of your employees becomes injured.
Sign Up for Pay-As-You-Go Programs
One way to make it easier to manage your expenses as a small business owner is to sign up for a pay-as-you-go program. These programs allow you to make payments to a worker's compensation program as you use the policy. This can make the costs more manageable than a single up-front payment. Certain payroll providers integrate with insurance brokers to ensure that payroll information is sent automatically.
Read the Fine Print
The workers’ compensation insurance policy estimate is not what will likely be your premium. If you read the fine print, you'll discover that the final premium is based on several manuals and a series of rules. These manuals are not developed by the insurance providers themselves, but are instead developed by independent rating agencies such as the NCCI. To determine which rules determine the calculation of your worker's compensation premium, you will need to investigate the states your employee reside in and determine which rating bureau holds jurisdiction over those states.
Use a Broker
Do not go it alone. You should find a good insurance broker who can educate you on the policies that will best protect your business. Find a broker who is an expert and highly knowledgeable in your industry. The agent should be an expert of worker's compensation rules within your jurisdiction.
Have a Safety Plan
Have a safety plan to avoid injuries. Teaching your employees proper ladder safety and appropriate signage will reduce the risk that they suffer from an injury as a result of unsafe practices. You might receive a premium discount if you implement certain safety measures. It is best to talk to your insurance broker to determine exactly which credits are available in your state based on safety measures.
If you do not purchase enough coverage or you do not follow all the relevant procedures, you may end up with employees who file a lawsuit with the help of Snow, Carpio, and Weekly, or a similar specialty law firm. Make sure you cover your bases to avoid painful litigation.
About the author
Anica is a professional content and copywriter who graduated from the University of San Francisco. She loves dogs, the ocean, and anything outdoor-related. She was raised in a big family, so she's used to putting things to a vote. Also, cartwheels are her specialty. You can connect with Anica here. If you are interested in an online safety degree, Anica suggests you check out the programs offered by Eastern Kentucky University.