Owning a business comes with a lot of responsibility, including making sure that you have the right insurance policies to provide protection in any situation. However, there are many common mistakes that business ownerâ's make with their insurance policies that waste money. Make sure to avoid these common insurance mistakes to save your business money!
- Wrongly classifying employees. Employee codes are used to determine how much you pay for your workerâ's compensation insurance. Since some codes are associated with more dangerous jobs, the workerâ's compensation coverage will be more expensive. Make sure that all of your employees are properly classified to ensure that you are paying the right amount for each employee.
- Classifying independent contractors as employees. Independent contractors cannot be covered under your workerâ's compensation insurance policy. Even if you have a long relationship with the same independent contractor, make sure that they are classified on his or her own.
- Not updating your insurance policies. You should look over your insurance policies at least once a year, or when there is a major change in your business to ensure that they are providing the right amount of protection.
- Having the wrong policies. There are hundreds of business insurance policies that are available, but not every business needs each one. Make sure that you are not paying for costly policies that do not benefit your business.
- Not implementing risk management strategies. Implementing the right risk management strategies at your business can help to keep the cost of your insurance low, since it can cut down on the number of claims that you make.
Contact the insurance professionals at Cook, Disharoon & Greathouse in Oakland, California for all of your business insurance needs. We will work with you to make sure that you have the right amount of coverage, all at the right price.
