Spring is here – a time for fresh starts, deep cleaning, and clearing out what no longer serves you. While most people think of decluttering their homes and offices, many business owners may not consider that spring is also the perfect time to review their business insurance policies.
As your business grows and evolves, so do your risks. If you haven’t reviewed your workers’ comp, liability, and other essential coverages in a while, you could be leaving yourself exposed – or worse, overpaying for coverage that isn’t protecting you the way it should.
So, before you dive into organizing your office, take a moment to dust off your business insurance policies with these key steps.
1. Workers’ Comp Policy Refresh
Workers’ compensation insurance is one of the biggest expenses for businesses – especially in industries like construction, manufacturing, and contracting. But many business owners don’t realize they’re overpaying due to outdated classifications, errors, or unnecessary penalties.
Some questions to consider:
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Is your current comp policy in alignment with the WCIRB Standard Classifications?
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Have your business operations changed?
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Should you request a WCIRB inspection to ensure proper classification and receive updated recommendations?
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Have you added a classification that is not on your policy?
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Have your classification wage rates changed, and if so, have you updated your payroll records to re-classify employees to the correct codes per their pay rates?
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Are you paying flat monthly installments for your workers’ compensation insurance?
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Re-evaluate your current payroll by classification to date, compare your current payroll to what you had estimated your payroll would be for your current policy year.
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Are you on target, exceeding, or falling short of your original estimate?
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Are you potentially at risk for a large audit premium at the end of your term?
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Do you use subcontractors or 1099 seasonal workers?
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Are you collecting insurance certificates and ensuring that coverage limits match your policy?
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Review your subcontractors’ coverage – any unlicensed or uninsured subcontractors could leave you responsible for additional workers’ compensation premiums.
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What are your trends, have you had a tough year or two with claims?
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How will this affect your X-Mod rating in the coming years?
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Consider what you can do now to get ahead of it.
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Failing to update your workers’ comp policy can cost your business thousands in unnecessary premiums. A thorough review could reveal savings you didn’t even know were possible.
2. General Liability / BOP Review
Regularly reviewing your GL policy helps keep your business protected and up-to-date with the latest industry standards and regulations.
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Does your current policy comply with the latest legal and regulatory requirements for your industry.
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Have there been any changes to your business services or products that should be reflected in your insurance coverage?
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Compare your estimated gross receipts to your actual figures to determine if you may owe additional premiums at audit.
3. Identify Coverage Gaps
Identifying coverage gaps in your insurance policies is essential to ensure you have comprehensive protection.
A few points to consider:
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Thoroughly review each policy, paying close attention to the terms, conditions, and exclusions.
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Check coverage limits to ensure the limits are adequate for your current needs.
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Take inventory of your assets, including property, equipment, vehicles and valuable items.
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Are you protected against cyber threats? Cyber liability insurance is essential in today’s world, yet many businesses lack coverage.
Insurance policies are full of legal terms and conditions that can be difficult to decipher. Seeking expert advice from an insurance agent or broker can help you better identify and address any coverage gaps, ensuring the protection you need.
4. Asses Your Operational Efficiency
Just like you wouldn’t pay for extra storage you don’t use, you shouldn’t be overpaying for insurance, payroll, and HR services that don’t align with your needs.
Many business owners assume their payroll provider or insurance carrier has them on the best plan – but that’s not always the case.
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Assess your current payroll provider. Are you getting the service and attention that you deserve?
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Does your current payroll provider feel like an extension of your team or an outside vendor who struggles to understand your unique business needs?
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Are you dealing with needless payroll errors?
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When was the last time you explored bundled service options, if ever?
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Bundling payroll with work comp and professional services such as HR, safety and compliance can provide real cost savings and operational efficiencies.
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Evaluate your costs compared to your overall experience and operational needs. You are likely to identify a more streamlined solution for managing payroll, insurance, and HR.
5. Refresh Your Compliance & Risk Management Plan
Spring is a great time to get ahead of compliance requirements and strengthen workplace safety before issues arise.
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Review your OSHA compliance. Have there been new regulations that apply to your industry?
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Is your OSHA 300 log up to date?
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Are you or any of your employees OSHA certified?
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Assess your current employee handbook, when was the last time it was updated?
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Handbooks should be updated to include new employment laws at a minimum once per year.
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Locate your IIP or Injury Illness and Prevention Plan.
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Is your plan up to date with the latest regulations?
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Could you easily locate it during an OSHA inspection?
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Conduct a safety audit.
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Are there workplace hazards that could lead to injuries and costly claims?
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By staying proactive, you can reduce risk, lower insurance costs, and keep your business compliant – all while protecting your employees.
Call in the Experts: Choosing the Right Broker
Whether you have been in business for many years or just starting out, choosing the right broker to assess your current business operations and insurance policies is key to streamlining operational efficiency and protecting your hard-earned assets.
When deciding on the right insurance expert to work with, consider the following:
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Are they well versed in all areas of insurance, business operations, employment laws and regulations?
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Do they fully understand your business and unique operational and insurance needs?
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Do they work for you, or are they subordinate to their carrier?
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Do they sell all lines of insurance and are they current with the latest technology and industry standards?
Don’t Let Hidden Risks Linger
Just like a messy office can slow down productivity, outdated or inadequate insurance and business practices can put you at serious risk.
Taking the time to spring clean your business insurance can:
✔ Save you money by eliminating unnecessary costs.
✔ Protect you from liability by filling coverage gaps.
✔ Keep you compliant with updated policies and risk management strategies.
At MartinoWest, our primary focus is on delivering exceptional services and products tailored to our clients needs. We are dedicated to fostering a sense of community and pride among our customers by upholding the highest standards of quality and innovation. MartinoWest: supporting entrepreneurs, driven by progress, and empowering the heart of our economy.
Experience the MartinoWest difference: Contact us for a comprehensive overview of your insurance and workforce management needs, and explore how we can help your business thrive!
