• Securing insurance coverage for all employees based on their job description or class code
• Ensuring that independent or subcontractors have their own workers comp coverage in place
• Understanding your policy limits and whether the policy completely covers your risk.
No matter how big or small the construction firm, if it has employees and works with the public, there are inherent liabilities each business owner faces. By gaining knowledge about workers comp insurance, you’ll find it much easier to make the right decisions about the insurance company and coverage you choose.
What You Need to Consider about Workers Comp
Employers use assigned workers comp class codes for their employee payroll. These codes are based on the primary tasks the employee completes while on the job. Companies must pay close attention to proper categorization of their employees. If an employee’s payroll is reported under the wrong category, there may be either an over-payment or underpayment on the workers comp charges.
Although an employer may get away with reporting employee payroll inaccurately for a short time, a workers comp audit by the insurer will quickly find the incorrect classification. This, in turn, can ultimately result in a large bill at the end of the policy year if the business paid premiums in a class code with a lower rate.
In many states over the years, employers also found ways to reduce their payroll tax liability and insurance expenses by classifying workers as “independent ...
... middle of paper ...
...ion program to reduce, limit and eliminate workplace injuries. On-the-job injuries will occur despite the best efforts of business owners and workers.
Recommendations: Prevention is always the best policy second only to proper employee training. Ensure that employees understand how to report all work-related injuries as soon as possible and that they know how to handle claims when they occur. Proper safety equipment and workplace training of all employees will help them stay aware of potential safety issues before accidents happen.
If you 're a contractor in need of workers compensation insurance or would like assistance understanding your policy and assigned class codes, take time to speak with workers comp experts, Enforce Coverage Group. Located in New York City, these professional brokers specialize in commercial insurance coverage for construction companies.
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