Common Workers Comp Mistakes Small Business Owners Make

Workers comp seems simple, but small business owners make costly mistakes with it regularly. Here is what to avoid.

Going Without Coverage

One serious workplace injury without coverage can financially devastate a small business. Legal penalties include fines, stop-work orders, and personal liability. The premium cost almost always is far less than the cost of a single uninsured injury.

Misclassifying Employees as Independent Contractors

Calling someone a contractor does not make them one legally. If they are found to be employees, you can owe back premiums, penalties, and be personally liable for injuries they suffered on the job.

Wrong Class Codes

A misclassification can cost thousands annually in unnecessary premium. Have a specialist review your codes at every renewal.

Not Collecting Subcontractor COIs

If a sub does not carry their own workers comp, their payroll may land on your policy at audit. Require certificates of insurance from every subcontractor before work begins.

Only Using One Carrier

Sticking with the same carrier without shopping means you are likely overpaying. Call Comp Matters Inc. at (631) 248-2500 for a free policy review.