We bet you only think about contractors insurance at renewal time, right?
In fact, you could do this for years until one day you pay the price.
All it takes is for you to receive a workers’ compensation audit, and you could be left with a hefty bill. This commonly occurs when you have had a stronger year than you initially expected.
To ensure you don’t make any mistakes, take a look at our ultimate guide to contractors insurance.
Avoid the State Insurance Fund
Many construction companies have no choice but to opt for a state fund when they first launched.
Yet, there are many more options available. Many contractors believe state funds are the best option, but in reality they’re not. They’re also often more expensive in comparison to other contractors insurance options.
If you have been running a business for three years or more, an insurance broker can help to find the best coverage.
Understand the Insurance Coverage
It’s important to identify exactly what your business is and isn’t covered for.
The last thing you want is to file a claim for something that’s not actually covered in the contract. There are various insurance types to choose from. It’s important to do your homework to find the best option for your needs.
For example, property insurance may cover on-site tools, but not vehicle coverage.
Know How to Calculate Workers’ Compensation Premiums
Are you placing all your employees into one classification? You might as well just pour your money down the drain.
If you want to reduce your overhead costs, learn to calculate workers’ compensation premiums. Don’t forget to factor in overtime, too.
Different workers classifications will come with different risk factors. It is these risks that will be related to a premium. Not only that, but the premium levels will also depend on the various salary levels. Insurance will be lower for an employee earning more than $27 per hour compared to those earning under $27.
Giving an employee a raise can actually save you money. This is especially true if you factor in the workers’ compensation.
For instance, it wouldn’t cost you any more to raise an employee’s wage from $25 to $27. That’s because you’ll save money with the lower premium.
It’s a great way to give an employee a well-deserved raise whilst lowering your insurance fees.
Limit Small Claims
Do you want to know the best way to reduce your workers’ compensation fees? Avoid small claims.
These insurance fees will depend on a claim’s size and the number of files claimed. An employer must provide an employee with compensation claim if he or she suffers an injury.
Yet, all those minor injuries filed could lead to an expensive insurance payment.
Provide Safety Training In Addition To Contractors Insurance
The best way to prevent minor or major injuries is by providing safety training.
Every contractor is required to hold a safety meeting every 10 working days. This is an opportunity to discuss any hazardous circumstances. The team will then understand the precautions they need to follow on-site.
It also provides a chance to discuss any recent injuries, so the team can learn from past mistakes. This can help to reduce similar accidents in the near or distant future.
Consult our full service contractors insurance agency to reduce your insurance costs. Contact us today.