By Thomas K. Coughlin, AAI, Air-Sur, Inc
In the blur of what’s required to run a business these days, executives often make the mistake of placing some important duties on the same level as an annual physical or a tune up for their cars. They’re important things to do, but once completed they can be forgotten until next year.
Treating some business matters this way can end up being expensive. Take, for example, the annual consultation with an insurance agent about workers’ compensation premiums. More than likely, the agent initiates the meeting, obtains the anticipated payroll for the upcoming year and develops the estimated premium.
That’s all there is until next year, same time, same agent. Right? Wrong! It’s a rare business that doesn’t change its game plan sometime during the following year. Such changes can affect how much money that business may owe at the time of audit. A higher-than expected audit premium can deliver a blow to the company’s well-planned budget.
More and more business owners are now realizing they can’t approach worker’s compensation coverage like their car’s maintenance schedule. They’ve learned to monitor the areas which might result in additional audit premiums: independent contractors, employee classifications and employee payrolls.