5 Useful Tips About Insurance For Contractors

Most contractors would not think about insurance until it is renewal time. This is their biggest mistake. Whether it is your fault or your insurance broker's, overlooking a detail of your insurance policy may lead to disastrous consequences. The worst would be having to end up paying too much. Here are some tips on how to handle insurance and workers comp for your company and your employees as well.

Not all workers deserve the same premium.
 
If you have your legal counsel ready, the next step that you should tackle is how to classify your employees differently. As each employee is exposed to different risk factors, then they deserve different premiums. For example, employees earning less than $25 an hour will cost more to insure than those who are making less than $25.
 
Employees working only on insulation will have a different premium than one who does only HVAC. Your legal counsel could work closely with your insurance broker in determining the premium for every employee.
 
Understand that state insurance is a poor option.
 
The first time you put up your business, perhaps your only choice for workers comp is probably only a state insurance fund. However, take note that state insurance is usually expensive and their services may be one of the least efficient. If your business is almost three years old, it is high time you went for better insurance options.
 
Keep an eye on small claims.
 
Naturally, one of the best ways to keep your workers comp cost low is to avoid injuries. With the help of your legal counsel, make sure that you do not get bombarded by numerous small claims from employees that require only minor first aid. At the same time, take care not to violate the law.
 
Do not neglect safety training.
 
If you want to keep workers comp low, you should conduct regular safety trainings. In fact, every ten working days, contractors must conduct safety meetings. Focus on topics that concern the most dangerous and hazardous situations to which your workers are exposed. One example is that for roof installation crew members, you should get them to learn how to wear the fall protection gear correctly.
 
Offer severance pay.
 
In order to offset high workers comp, you need to think about offering severances. This should also protect you from possible employee lawsuits in case you let go of an employee for some unclear reason. Offer the severance pay on the condition that he will sign a document stating that he was not harmed by the company.
 
Conclusion
 
It is not easy being an employer because you have to balance your employees' welfare along with your own company's integrity and finances. The most important thing is talk to a good insurance broker on how to offset high workers comp. At the same time, make sure with your lawyer that you are not violating anyone's rights.
 
Insurance is what protects your business from untoward circumstances as well as unexpected claims.  At CSIS Insurance Services, Inc, we do our best in making sure that our clients are well-protected with affordable and comprehensive policies. To learn more about how we can help you, please contact our agency at (888) 501-2747 or Click Here to request a free quote.