After purchasing your coverage, you can be sure 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 sure due to the number of facets of operating and securing your business and the legal system.
Therefore, do the following after and during your policy:
1. Read it
Read every word of your policy. Take notes, mark it. This document not only explains your obligations but the obligations to 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 it is included and that you have a copy attached. Since the last court decisions in Florida, this is a must! This section provides insurance and cost of defense for claims and lawsuits. They are not covered by the main part of the policy. The expenses incurred for attorneys’ fees and cost are extremely high and enough to cause serious financial damage to a small or medium-sized business.
3. Keep the policy updated
If your business adds additional locations or expands out of state. The policy needs to be updated. Include updating your worker’s compensation policy on your TO Dos checklist as you expand your business. Failure to notify the insurance company of a location in another state may result in a decline in 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 report within the stated time and manner may result in a decline in coverage. Depending on the number of awards and legal fees, this could be the end of the deal.
5. Review the Audit/Annual Statement
It is important to review the information on your annual or quarterly statement. If your business was down, you may be entitled to a refund. On the other hand, if your business did well, you may have to. If you use a PEO, check your statement for coding, business qualifications, and discount availability. Your broker should contact you periodically to determine available discounted rates and available services.