In business, they say that change is the only constant. Organizations need to be agile and adapt to changes to stay competitive. If you’re running or managing a company, chances are you’re dealing with various types of changes on a regular basis.
For example, your organization may be subject to external changes such as the implementation or revision of federal and state laws, or changes brought on by the ebb and flow of economic conditions. You may also find yourself dealing with the internal effects of organizational changes such as expansion into a new state, the addition of staff or the changing of employees’ job descriptions as your company grows.
Smart managers know that these kinds of changes not only affect business operations; they may also have a direct impact on your insurance coverage. From workers’ compensation to liability insurance and other property and casualty insurance, operational and organizational changes may lead to an ongoing series of adjustments and updates.
Minimizing change-related risk
It’s always smart to minimize change-related risks and costs by keeping your insurance coverage current. Make sure to notify ADPIA as quickly as possible if any of the following changes happen:
- There is a change in your company address or you open a new location. Your location — city and state — directly affects your rates, so let us know if you move. You also don’ t want to miss any time-sensitive notifications that may arrive via postal mail.
- You begin doing business in additional states. For one thing, workers’ compensation laws vary by state, so it’s important to make sure you have proper coverage in every jurisdiction.
- Workers’ job duties change. Has a part-time employee been upgraded to full-time hours? Did your independent contractor get hired as a full-time employee? Changes like these may require the updating of your workers’ compensation classification codes.
- There are changes in the status of your company’s ownership. Have you changed from an LLC to a C corp? Added a partner? Workers’ compensation rules also govern company owners and officers, so your insurance costs may be affected if ownership status is revised.
To help with compliance and obtain sufficient coverage, it’s essential to understand and follow all of the state and federal regulations that govern your business — and to keep your insurance professional updated on any changes that might affect your insurance needs.
Have questions or need to make a change on your current policy? Call us today!
- Call our Client Services Team at (800) 524-7024 or
- Call your Licensed Client Executive directly.
