Common Insurance Challenges for Small Businesses

workers’ compensation insurance

Many of your small business clients are concerned about workers’ compensation insurance. While in some states they may not be required to secure coverage, they can still find themselves in legal peril if an accident or injury occurs on their property. There are quite a few challenges to small business owners in this area, but a wholesale brokerage firm can help you overcome those challenges.

Difficulty Securing and Maintaining Coverage

Often, large carriers are just not interested in small businesses, particularly new ones. They may see your clients as higher risks than they are willing to cover. Even if a small business does find coverage, the rules may change later, disqualifying the company from eligibility. Examples of such changes include the following:

  • Raising minimum employee payroll levels
  • Stricter safety codes requiring expensive upgrades
  • Higher rates

Prohibitive Cost

Most workers’ compensation insurance premiums are based on a particular rate per $100 paid to workers. If the rate is $2, that is pretty affordable. If, however, the business operates in a high-risk industry, the rates can become too high for the small business owner to afford.

Wholesale brokers can help you find workers’ comp carriers for your small business clients. Help protect them and their employees with a strong package at a competitive rate.