Workmans Compensation for Business Owners on a Budget
You’ve struggled mightily to keep your company afloat amidst financial chaos, industry downsizing, increased competition from overseas, and inflating insurance costs. You know you need workmans compensation insurance — if you have 4 plus employees, the coverage is legally mandatory, in fact. But you are ever-mindful of your budget. You simply cannot afford to take on too many upfront costs. This article can help you strategize about how to shield your business assets, limit work injury, and keep your coverage revitalized.
Workmans Compensation: Steps to Get Costs Down
Identify your legal requirements — What minimal coverage do you need to stay within the bounds of the law? Aim to comply with industry standard. Under-insure, and you could alienate your workers and drive them into the arms of competitors. You could also set yourself up for serious consequences. For instance, say a work injury happens at one of your plants. The hurt employee requires $135,000 worth of surgery and acute medical care — if you lack good coverage, some or all of that could come out of your company’s coffers.
Identify your biggest exposures — Where are workers likely to be hurt? If you own a company that ships, and you send out drivers often in dangerous weather, you may have serious auto-related exposure. If you run a construction business, your workers could face diverse dangers from toxic inhalation or repetitive stress injuries. Create a safer environment. Your insurer may even have a special loss control service to help you identify areas of risk and mitigate against those risks most effectively.
Get help — Connect with a credentialed business insurance agent who specializes in your industry. Talk to peers in your line of work. Read up on strategies and tactics in trade magazines. Continually educate yourself. Remember, the process of optimizing workmans compensation insurance is just that — a process, not a one-time thing. As your business evolves, takes on new clients, shifts its focus, and so forth, your workmans compensation insurance needs will also morph — quite substantially.
Get coverage to supplement — Other common coverages include general liability, property insurance, commercial auto insurance, business interruption insurance, and disability insurance. If thinking about all these coverages makes your head spin, consider opting for a business owners policy BOP) — packaged and tailored to your needs and budget.
Limiting Workmans Compensation Costs
Explore higher deductibles. The more risk you take on yourself, the lower your premiums will be, in general. Also, select multiple policies from one carrier to qualify for a multi-policy discount. Lastly, shop around to get at least three quotes before making a decision.
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