Key Workers’ Compensation Errors That Could Damage Your Business

Key Workers’ Compensation Errors That Could Damage Your Business

Successful businesses have strong workforces. Protecting your employees is likely a top priority. Workers’ compensation helps you take care of your employees. Workers’ compensation in Astoria, NY, protects both you and your employees. The policy covers your business if there is an employee issue in the workplace. Your business is covered if your employees are injured on the job. Workers’ compensation covers their medical treatment and rehabilitation. Your employees will also be able to recoup any lost wages while they are off work.
Workers’ compensation also covers any allegations of harassment or discrimination from your employees. Your business will be protected against possible legal action. A strong workers’ compensation plan can help you attract top talent because you show your commitment to taking care of your employees. While looking over your policy, try to avoid these workers’ compensation mistakes.

  • Failing to Check for Proof of Insurance ProperlyIf your business uses subcontractors or other independent contractors, be sure to inquire about their workers’ compensation insurance before they get started working for you. Your business may be left financially responsible if your subcontractors do not have workers’ compensation regarding an employee injury on the job site. Uninsured contractors are classified as employees. If the subcontractor is injured on the job, you will be responsible for handling the benefits. General liability coverage isn’t enough to protect your business from a potential financial disaster.
  • Not Judging Payroll AccuratelyPayroll issues can cause changes to your insurance premium at the start of your policy. Some payroll errors could cause you to pay an extra premium, while others could lead to you receiving a refund during the annual audit. Paying an extra premium is significant because you lose the opportunity to invest that income. It’s recommended that you take as much time as necessary to ensure accurate payroll projections.

    Take note of any overtime pay so that the auditor can discount it. If the auditor cannot break the overtime portion, it will be included in the premium. Consider using a pay-as-you-go policy that links payroll to workers’ compensation premiums. This may help prevent payroll confusion. In most cases, business operations are classified into code that matches the work being performed. The classification system identifies high-risk activities performed by employees. High-risk activities lead to high premiums.

    Changes to your business operations may alter the classification of your workers’ compensation program. If you make any changes, be sure to notify your insurer so that they can adjust your workers’ compensation policy. It’s recommended that you look over your website to ensure that everything is current. If an auditor reviews misleading info on your website, that may cause your premiums to increase.

  • Mismanaging Workers’ Compensation ClaimsOne of the more common workers’ compensation mistakes is poor claims management. This will cause your business to pay more for workers’ compensation insurance. You will have cheaper premiums if your employees are involved in fewer accidents. Having good claims management skills can help control costs. You can help reduce claims costs by implementing a safety plan, conducting a thorough investigation into workplace injuries, and maintaining transparency at all times. You need to be on the same page with your insurer.

Consult With 01 Insurance

Workers’ compensation is an asset for your business. However, you have to be mindful of potential workers’ compensation mistakes that could damage your business over time. If you have any questions, the team here at 01 Insurance will assist you.