Streetsmart insurance Blog
In Can Subcontractors Hurt My Business?, we discussed the impact that uninsured/underinsured subcontractors can have on your business insurance policies. Today, we will discuss the various ways that subcontractors can have a negative impact on your workers compensation insurance audit as well as some advice that can help you keep your costs down.
Can Subcontractors Have A Negative Impact On My Workers Compensation Insurance Audit?
Although your insurance provider can adjust your premium at any point during your policy term, they will typically review your policy and change your rate after they have completed their annual insurance audit. Your auditor will ask for your payroll records, check records, cash disbursement records, and certificates of insurance when they conduct their audit of your business. If they find out that you have hired subcontractors who do not have certificates of insurance for current workers compensation insurance policies, your insurance provider will increase your premium to compensate for the additional risk that those uninsured subcontractors pose. Your insurance provider will also increase your premium if your subcontractors do not have enough insurance to cover their employees (this may be an issue if your subcontractors work in a high-risk occupation).
How Can I Keep My Workers Compensation Insurance Premium From Going Up?
There are many ways that you can protect yourself and your business from unnecessary risk:
Street Smart Insurance is committed to providing affordable coverage. Whether you are looking for your first general liability insurance policy or you are shopping for a better price, our agents are ready to help. Call us at 732-462-8343 for a free quote!