What insurance must I provide for my employees?
As of today’s writing, no one is really sure what healthcare reform will bring, though there are certainly many different opinions and forecasts.
Today, we’ll focus on what is required for a business with employees.
Current law requires most businesses to have workers compensation insurance and unemployment insurance. In addition, depending on location, disability insurance may be required.
It is important to understand what workers compensation is required in your state. You can contact your state insurance department and your licensed insurance professional to determine the particulars.
Many businesses are required to pay unemployment insurance taxes and again, your stated insurance department and insurance professional will help with the details. Some states also require some form of disability insurance to help replace income for a non-work related injury or illness.
As your business grows, you may wish to consider some form of benefit package. Only you know the cash flow and profitability of your small business. Attracting top talent generally means it time to add some benefits.
A start up benefit package may include major medical insurance, a group life and disability package. (Note, vacation and earned time, sick time, are also part of a benefit package but not relevant here.) Sit down with your licensed insurance professional and review potential benefit packages and costs involved.
Determine what contribution amount the company may wish to offer as part of the compensation. Your agent can help you lower costs while providing additional coverage that helps you recruit and retain top talent.
There have always been disagreements of valuation of commercial buildings between the client and insurance company. Today, even more so. Construction costs are up and rents are down. This leads to more frustration than usual. Valuations for companies many times are to reflect “replacement” cost. In other words, what would it cost the insurance company to re-build or replace the building. While most
owners are thinking about the building’s value out on the market. Each of these thought processes may be worlds apart. Especially now when rents are low and vacancy rates are high. However, our clients should evaluate what the cost of under-insuring their investment will truly be. For instance, in case of a total loss by fire, tornado, etc. Would you be willing to accept the amount you have requested as insured value? Can you replace the building for the value paid and would you? More importantly is coverage in a partial loss situation, where the building is damaged, but not a total loss. After your chosen deductible, will you have enough money to make the repairs for occupancy? Remember, in catastrophic losses, costs of materials and labor is going to rise. Un-repaired damage for a length of time will be more costly due to possible mold, mildew, vandalism and other perils. Also, one needs to consider potential lost revenues due to damage of the property. What will it cost in terms of time and additional expense to occupy the building? All these things should be discussed with your agent. Please call one of our agents who will work with you in protecting your financial assets.
Commercial Insurance.Net, LLC Advisor is not an attorney, accountant or certified financial planner and makes no representations or warranties to that effect. Always check with your chosen professional for your specific situation.