Updated: August 4, 2019
There’s no such thing as an “easy job”. Each job presents its own distinct set of challenges that people must learn to deal with.
There are some traditional workplace hazards that present a completely different kind of challenge. Luckily, there are multiple insurance plans and options that have been specifically designed for such situations.
Contractors are no different when it comes to that. It won’t be hard to find business insurance for contractors as the options as well as insurance providers have grown in numbers exponentially.
This is also a profession where the person is perhaps in greater physical danger than a lot of other professions. However, that front is usually covered by the typical insurance policy. It’s the salient features of these policies and plans that most contractors should be worried about.
Being aware of these policies can end up helping you in the future. So, here are some helpful insurance tips for contractors to follow.
Not All Workers Deserve the Same Premium
Admittedly, that statement sounds draconian and utterly shambolic at first, but there’s a good reason behind it. As a boss, it makes sense to you that not every worker adds the same value to your organization.
There are some who perform better than others, while there are those that are performing well enough and there are also those that underperform constantly. The reasons for that does not matter at this point. What matters is how you view these different workers as entitled to different treatments.
It is important that you know exactly how your workers’ compensation premiums are calculated. If you’ve opted for the old-fashioned one classification method then you’re effectively throwing money away.
Take into account different factors like risk, job hours, number of completed projects, customer feedback and then come up with a different insurance premium for each worker which depends on how important they are for your organization.
Look Out For Those Small Claims
The equation is simple enough i.e. the more your workers’ avoid injuries, the lesser your workers’ compensation will be. However, a lot of contractors prefer to have a reduced monetary amount attached to the claims as opposed to a reduced number of claims.
While it may seem like the logical choice in the short-term, it will end up with you having to pay greater premiums for the next year in the long-term. If you do take this route, make sure that you send your employees to an external clinic and pay out of the pocket for the expenses.
In the long-run, this will save you money and resources that would’ve been spent on paying a high premium otherwise.
Know What Your Policy Covers
Make sure that you’re clear with your insurance broker about what exactly does you insurance policy covers. Understand what is covered and what’s not covered. If you don’t, then you’ll be in for a nasty surprise at some point.
Furthermore, understanding exactly what you’re not covered for can help you identify further insurance options that do cover you for those instances.
This article is contributed by Guy Huri from Tel Aviv.