After purchasing your coverage, you can rest assured that you have met most of your financial obligations for work-related injuries. Most does not mean all. It is virtually impossible as a business owner to be completely safe due to the many facets of operating and securing your business and the legal system.
So do the following after and during your policy:
1. Read it
Read every word of your policy. Take notes, mark it up. This document not only explains your obligations, but also the obligations for the insurer. They make mistakes. If you don’t understand the policy, call your agent or broker. Make sure it is coded correctly, it has a direct effect on your premium and may affect the application of coverage in the event of an incident.
2. Confirm “COVERAGE B”
Make sure this is included and that you have a copy attached. Since the latest court decisions in Florida, this is a must! This section provides the cost of insurance and defense for claims made and lawsuits. They are not covered by the main part of the policy. The expenses incurred for attorneys’ fees and costs are extremely high and sufficient to cause serious financial damage to a small or medium-sized business.
3. Keep the policy up to date
If your business adds additional locations or expands out of state. The policy needs to be updated. Put updating your worker’s compensation policy on your to-do list as you expand your business. Failure to disclose an out-of-state location to the carrier could result in declining coverage.
4. Comply with reports
You should make sure that when you read the policy it describes the requirement to report a claim or lawsuit. Failure to show up within the time and manner indicated could result in a decline in coverage. Depending on the amount of awards and the attorneys’ fees, this could be the end of the business.
5. Review the annual audit / statement
It is important to review the information on your annual or quarterly statement. If your business is down, you may be entitled to a refund. On the other hand, if your business performed well, you may have to. If you use a PEO, check your statement for coding, business ratings, and discount availability. Your broker should contact you periodically to determine available discounted rates and available services.