Do you run or own a small business? How profitable are you? Are the headaches worth it? Expenses out of control?
We all know that small business is what makes our economy run. Sure – we’d all like to be part of the big business scene with thousands of employees, multiple locations and layers of management to deal with all the problems that come up – and we know one thing – if you don’t have problems, you’re not doing business! That’s true of all businesses – everywhere!
But a small business is different. Usually the owner or owners will do everything from dealing with customers to watching the bottom line-and everything in between. Watching and controlling expenses are so important to small businesses that it’s important to get every discount available – especially when it comes to insurance.
A growing concern is the increasing cost of workers compensation. Workers compensation, along with New York State DBL are statutory coverages. While New York State DBL is fairly reasonable, I’ve found out, in many cases, the cost of worker’s compensation is out of control. So what can you do about it?
Developing safety procedures, educating your employees and being aware are a few ways that will help. Employee safety meetings can also help. These have proven to reduce claims and that will have a positive effect on your premiums. But many times it simply comes down to paying the premium for coverage that is mandated. The cost for workers compensation is getting out of control. What can we do about it?
The rate for workers compensation is made up of a few things – nature of business, payroll, job classification, location and claims history are among them. Some things you can control, some you can’t!
Here are some things you can do:
- Check to make certain job classifications are correct – this can be very costly if incorrect
- Check and review your payroll-make certain you are audited on a regular basis
- lf you have a change in the number or employees and/or payroll, request an adjustment
- lf you are an LLC or employer you might look into waiving coverage for the members or owners – but be careful-this means you are not covered and should make certain you have other coverage that would provide similar coverage. In many cases, it might make financial sense for an owner to waive workers comp coverage and then purchase an individual disability policy-this doesn’t work in all cases, but it’s something you can look into with your broker.
- Try combining your workers comp coverage with the same company you have your business insurance with – the discounts for multiple lines might be worth it.
- Have your broker take your coverage out to market every few years – this is no different then any other insurance you have – competition is good for the soul!
It looks like the summer is finally getting here – it’s about time! So enjoy the good weather – don’t forget the sun screen and always feel free to reach out to me if you need to!
