Depending on the type of business you operate, finding workers' compensation insurance could prove to be challenging. Some insurance companies are reluctant to provide coverage to companies who have a high risk of injury. If you are one of those companies, here is what you need to know about hard-to-place workers' compensation insurance.
What Is Hard-to-Place Coverage?
In most instances, businesses are able to easily obtain workers' compensation insurance after a risk assessment. However, some businesses that have a higher-than-average risk level can be denied coverage. Businesses such as construction companies and pipeline construction companies are usually considered high risk.
Hard-to-place workers' compensation is a special type of coverage that offers protection to those types of businesses. A business can still get the level of coverage needed, but with a specialized policy that covers a wider range of scenarios.
There is a possibility that your business will have to pay a higher premium for the protection.
How Can You Get a Lower Rate?
Due to the possibility that your business will pay more for coverage, you will undoubtedly be looking for ways to cut your premium. The most obvious method of doing this is lowering your business's risk level.
There are several ways to cut your company's risk level. For instance, you can ensure that your employees routinely undergo safety training. Safety training is not just for when an employee is initially hired. Employees need to have refresher courses. Safety training could result in a lower risk of your employees having accidents that could lead to a filed claim.
Some companies choose to outsource some elements of their work to cut down on the possibilities of accidents. For instance, scaffolding work can be outsourced to another contractor if you own a construction company. If a contractor's employee is injured, you are not responsible for the injury. The contractor is.
You also need to ensure that safety equipment is available to every employee and that they are actually using it. Routinely inspect the equipment to ensure it is still up to standards and do not hesitate to replace equipment that is worn. Consider placing someone over this particular task so that there is a point person whose sole duty is to keep equipment updated.
Consult with an insurance provider who offers hard-to-place workers' compensation insurance to find other ways that you can lower your premium. There might be special discounts available that you qualify for that can help your business save money.