Small businesses are just that – small. This means that they likely need virtually every penny that they earn, especially right at first. So, when insurance and workers’ compensation premiums go up, it can affect the overall business. Therefore, it is important for small businesses to be aware of the things that could make premiums go up so that they can work to prevent higher premiums:
- Any type of insurance premium, including workers’ compensation, will increase when claims have been filed. In short, this is because the financial risk of the business has increased.
- Another common way for premiums to increase is the way your insurance carrier has your business listed. Classification is key to your premiums so you want to ensure your insurance agent classifies your business correctly.
- When your payroll increases, your workers’ compensation premium may increase as well. Again, the risk increases because you have new employees and are paying out more money.
Make sure you have the right workers’ compensation coverage for your business by contacting us today at Aimpro.