Policy mistakes are often the most devastating problems to deal with in workers’ compensation. By knowing the common policy mistakes, you can learn how to avoid them.
Policy changes that occur even in mid-term are subject to change such as changes or adjustments to operations or mid-term cancellations if not addressed properly. Payroll inaccuracy can lead to debts once a policy is complete. Another common mistake is the use of the wrong class codes. When this happens, the insured will have to pay the premium owed for the misrepresented payroll after the audit reveals the mistake. To prevent this, be aware of the differences in high-wage and low-wage rates and consult your broker on the operations that are included and excluded from the class codes used.
To avoid common policy mistakes in general, remember to report the following changes to your broker:
- Changes in business operations or product
- Change in ownership
- Additional locations
- Out-of-state operations
- Changes in payroll
- Certificates of Insurance are required
At ProAction Insurance, we are dedicated to securing the best value for your business and give you peace of mind so you can focus on what you do best – running your business.