As a business owner, the New Year is a busy time for you with end of year recordkeeping, employee benefits issues, evolving compliance regulations, and a long list of other responsibilities. And this year, we have a new President and administration coming onboard that could shake things up again.
With everything on your plate as you kick off another year, it’s easy for some things to slip through the cracks – like your commercial insurance coverage. But it’s one of the most crucial aspects of your overall risk management strategy. And don’t forget – you have a great deal of influence over how much you pay for that insurance.
Want to keep your business insurance premiums under control this year? Avoid these seven costly mistakes:
- Becoming apathetic about workplace safety. Many of the most common workplace hazards such as slips, trips, and falls can easily be avoided with diligent housekeeping and a safety conscious staff. When you get complacent about safety, that’s when accidents and injuries are more likely to happen, and that can lead to sanctions and fines by OSHA, workers’ compensation claims, and higher insurance premiums.
- Not adequately training your workers. Industries are constantly changing with advances in technology, equipment, and processes, and changes can lead to new risks. The only way to stay on top of these changes is through ongoing training. If your workers aren’t properly trained, they’re more likely to make mistakes that can cause accidents and injuries – and ultimately, higher workers’ comp premiums.
- Hiring subcontractors with no insurance. If an accident occurs and a subcontractor’s employee gets injured, you could be required to provide workers’ comp benefits to the worker if the sub doesn’t have that coverage. And that can only drive your premiums up.
- Failing to comply with labor laws. Every business must comply with federal, state, and local employment laws. If you try to save money by misclassifying an employee as an independent contractor or hiring illegal workers, you could be subject to costly fines, lawsuits, and higher insurance premiums.
- Not carrying adequate insurance. If you skimp on insurance coverage just to save a buck, you’re taking a huge chance that you won’t incur a large loss. And if you don’t have enough insurance on your business property, you could be subject to a coinsurance penalty if you sustain a property loss – and that penalty could easily be greater than the extra premium you were trying to avoid in the first place.
- Not buying any insurance. Some business owners think skipping insurance altogether is a money saver. After all, why buy General Liability insurance when you’ve never had a claim filed against you, right? Needless to say, failing to buy insurance at all is an enormous gamble. And when you do finally decide to buy insurance, you’ll pay more due to the gaps in coverage in your past.
- Not getting your insurance from a reputable agent. There’s no shortage of insurance companies and agents out there, and you need to vet them carefully and choose wisely. You want someone who knows your industry, knows business insurance inside and out, and can give you the best coverage at the best price. When you find a company and agent you like, stick with them. You’ll pay more for insurance if you’re constantly switching companies.
Need a reputable New York business insurance provider who can put together the best package at the best price for your operation? Give us a call at BNC Agency today. We’ll make sure you’re starting your year off on sound financial footing.