Mistakes to avoid while purchasing business insurance Mistakes to avoid while purchasing business insura | Página 4

Mistakes to Avoid While Purchasing
Business Insurance
Incorrect usage of Workers’ Compensation
classification codes
As there are more than 700 codes governing compensation to workers in the
event of an accident, it is important to choose the right code applicable to a
worker depending on his or her risk exposure. Choosing an incorrect code, will
mean either over exposure or under exposure of the worker to physical risks, and
both options are undesirable.
Not updating insurance plans
Many business owners make the mistake of not updating their insurance plans
from time to time. This should be avoided as far as possible and as a right
business practice business owners should update their insurance plans as and
when there is a change in their business ownership, hiring or letting go of
employees, new equipment or expansion of business.