by David and Tracy Bell | Jan 7, 2024
Audits are common with general liability, workers’ compensation, liquor liability, commercial and other business insurance policies.
This is because when your commercial insurance policy is drafted, it’s based on an estimated risk exposure based on sales volume, number of employees and contractors, locations and common industrial risks.
In most cases, the premium for your insurance isn’t a final number and fluctuates based on year-end actual numbers. The audit is an important process that determines the final premium.
Most cringe at the thought of an audit, but did you know there are several ways that an audit benefits you and your business? Let’s take a look at why you can look forward to your audit.
Changed mindset
Audits aren’t always spurred by something negative. They don’t have to mean that a business has done anything wrong or that the IRS is asking to dig through your finances. In fact, this is a positive thing in the insurance world! A general liability insurance audit is completed to thoroughly examine your business’s payroll and risk exposure and to check for any changes over the year in how much risk was actually incurred. An audit may also be required for your workers’ compensation and commercial property insurance coverage.
Ensures proper coverage
During the first policy term or at the end of the coverage period, the insurer will request an audit to adjust your premium based on the most accurate sales numbers and earnings. With how much a business can change year to year, this helps to ensure that you have the right amount of coverage as you grow and change. It can also spot gaps in coverage or new exposures that appeared during the year that weren’t seen before, helping to make sure you are covered should the unexpected arise.
It can save you money
The initial insurance premium estimate can be off; remember, the purpose of insurance premium audits is to use your actual sales and operating data to determine the true picture of risk. The audit can save you money, as your premiums can decrease if sales volumes, staffing or other adjustments to predicted exposure change and less coverage is needed. You may also be entitled to a refund or a credit on the overquoted premium at the start of the year.
Best practices already involve accurate record keeping in your operations; this is exactly what will help your insurance audit go smoothly and painlessly. Documentation you’ll need to provide includes payroll and cash summaries, federal and state employment reports, subcontractor and 1099 forms, relevant tax documents and any other items that will help an auditor have a clear understanding of your business state and revenues.
We can walk you through the process and answer any questions you may have. Call or email us today, and let’s discuss your premium basis and risk exposure and what that could mean for an upcoming audit. Let’s help you prepare so that your audit can feel more like a walk in the park.
by Syndicated Insurance Resources | Jan 15, 2023
Audits are common with general liability, workers’ compensation, liquor liability, commercial and other business insurance policies.
This is because when your commercial insurance policy is drafted, it’s based on an estimated risk exposure based on sales volume, number of employees and contractors, locations and common industrial risks.
In most cases, the premium for your insurance isn’t a final number and fluctuates based on year-end actual numbers. The audit is an important process that determines the final premium.
Most cringe at the thought of an audit, but did you know there are several ways that an audit benefits you and your business? Let’s take a look at why you can look forward to your audit.
Changed mindset
Audits aren’t always spurred by something negative. They don’t have to mean that a business has done anything wrong or that the IRS is asking to dig through your finances. In fact, this is a positive thing in the insurance world! A general liability insurance audit is completed to thoroughly examine your business’s payroll and risk exposure and to check for any changes over the year in how much risk was actually incurred. An audit may also be required for your workers’ compensation and commercial property insurance coverage.
Ensures proper coverage
During the first policy term or at the end of the coverage period, the insurer will request an audit to adjust your premium based on the most accurate sales numbers and earnings. With how much a business can change year to year, this helps to ensure that you have the right amount of coverage as you grow and change. It can also spot gaps in coverage or new exposures that appeared during the year that weren’t seen before, helping to make sure you are covered should the unexpected arise.
It can save you money
The initial insurance premium estimate can be off; remember, the purpose of insurance premium audits is to use your actual sales and operating data to determine the true picture of risk. The audit can save you money, as your premiums can decrease if sales volumes, staffing or other adjustments to predicted exposure change and less coverage is needed. You may also be entitled to a refund or a credit on the overquoted premium at the start of the year.
Best practices already involve accurate record keeping in your operations; this is exactly what will help your insurance audit go smoothly and painlessly. Documentation you’ll need to provide includes payroll and cash summaries, federal and state employment reports, subcontractor and 1099 forms, relevant tax documents and any other items that will help an auditor have a clear understanding of your business state and revenues.
We can walk you through the process and answer any questions you may have. Call or email us today, and let’s discuss your premium basis and risk exposure and what that could mean for an upcoming audit. Let’s help you prepare so that your audit can feel more like a walk in the park.
by David and Tracy Bell | Jul 20, 2022
As the owner of a small business, one of your many responsibilities is likely managing business insurance costs. With everything else going on in the world today, you may feel like you don’t have time to keep on top of this responsibility.
But it’s still a good idea to periodically review your business insurance coverage to ensure that you have the policies you need and are getting the most for your money.
Here are five things to consider.
Are you reviewing coverages annually? Business needs can change rapidly, so it’s a good idea to review your policy with us on a regular basis. You may find, for example, that you need to purchase additional protection (perhaps you’ve purchased new computer equipment, or perhaps you’ve increased or decreased employees). Or you may find that you can save money by adjusting some coverages. We can help you ensure that you have the appropriate coverage for your business.
Can you reduce expenses by combining coverage? It wouldn’t be surprising for you to have multiple policies with different insurance companies. For example, you might have general liability coverage from one insurer and cybersecurity coverage from another. By bundling all of your coverage, you may be able to reduce your premiums. And having only one policy can make managing your renewals a little less time-consuming.
Can you change your deductibles? A general guideline for insurance costs is as follows: higher deductibles, lower premiums; lower deductibles, higher premiums. So increasing the deductible on your business insurance policy may reduce the cost of your premium. You might then invest the money you save back into your business. Before opting for a higher deductible, however, it’s a good idea to consider how much money you have available to pay out of pocket for a covered claim, such as a theft or a fire. You don’t want to risk your business’s future to save a bit of money each month.
Consider stronger risk management in your daily operations. It’s important to think about your coverage needs in advance. Can you pinpoint potential business risks? For example, if your company could possibly experience a data breach, you will want to have cybersecurity coverage. Otherwise, you’d be responsible for costs related to your business’s recovery from a breach, such as credit monitoring services, legal fees and fines from your state if your business is required to have this kind of coverage. This could cost thousands of dollars, so having the right insurance coverage in place can be critical if the unexpected happens.
Plan for uncertainties. You might also consider taking measures to help reduce business risks. One measure is planning for a disaster, such as a destructive storm or fire or data breach, as mentioned above. But business succession planning is also critical. As a business owner, you’ll want to ensure that you leave everything in order should you need to leave the business unexpectedly.
We can help you review your current insurance coverage and make adjustments based on your company’s changing needs. Call or email us. We’re always here for you.
by David and Tracy Bell | Oct 14, 2021
In our community, we have seen many businesses struggle to keep staff. Some of the restaurants are altering their hours because they don’t have enough workers which means that they are forced to pay overtime and this erodes their profit margins during this critical “jump-start” phase. As we emerge from the restrictions and quarantines, it’s not just restaurant owners facing these frustrating challenges.
We recognize that the pandemic will impact our clients and partners forever. While the risk of infection is diminishing due to vaccinations, many of the workflows in the service sector have been forever changed. Employers will need to carefully navigate through the “new normal”. Without a doubt, flexibility is imperative. Also, technology will continue to play an important role by allowing collaboration without the necessity of face-to-face meetings.
While technology is the tool, the most important asset of businesses will continue to be the human element. Competition for dependable and experienced workers will require a renewed focus on recruiting and employee retention strategies. As a stimulus to employers and direct payments to employees run out, business growth will only be limited by the employee-supported service capacity.
Our strategy, at Syndicated Resource Group, will be to offer products and services to employers which augment their ability to remain flexible and allow growth supported by a reliable workforce.
by Syndicated Insurance Resources | Jan 12, 2021
Across the nation, headlines consistently share reductions in workers’ comp rates.
To give you an idea, here’s a snapshot from various publications:
“Florida approves 6.6% rate decrease to workers’ comp rates” (Insurance Journal)
“Tennessee announces comp premium reductions for 2021” (Business Insurance)
“New year brings public employers 10 percent rate cut on work comp premiums” (The Pike County News Watchmen, an Ohio publication)
“No increase for average workers’ comp rates in 2021” (Washington State Department of Labor & Industries)
While the decreases vary from state to state, one thing is clear:
2021 has started with an opportunity for insurance brokers and employers to benefit from cost savings.
It’s a no-brainer that saving money and benefiting from rate reductions is something everyone wants to do.
Security + Protection = Savings
One way to save money? By ensuring the right insurance coverage is in place to cover those “what if” scenarios when they happen because things happen when you least expect it.
Workers’ compensation insurance is one of the most important pieces of coverage that brokers will ever sell, or employers will ever buy.
WHY? Because there is a tremendous amount of liability associated with potential job injuries. And workers’ comp provides a layer of security and projection that is hard to deny.
Every type of business needs workers’ comp insurance. This protection helps to ensure compliance with state requirements and coverage for out-of-pocket expenses you didn’t see coming.
If a business has employees or contractors…
If on-the-job injury or sickness is a possibility…
If a business needs protection from potential lawsuits…
If coverage for medical treatments, disability benefits, vocational rehabilitation, or funeral services are benefits
If a state requires insurance to keep a business compliant…
Even if a state doesn’t require insurance for compliance…
If you sell commercial insurance to any size employer…
Then workers’ comp insurance is important and essential.
But finding the RIGHT type of workers’ comp insurance isn’t always that easy.
Find Workers’ Comp Solutions. Increase Your Benefits.
In today’s shifting marketplace with so many variables afoot, you need to know where to look and how to find the best solution to cover unique business scenarios.
From flexible payrolls that evolve with market changes to higher risk industries or businesses with a history of claims—finding the RIGHT options might create competitive challenges.
The good news is Syndicated Insurance Resources offers affordable pay-as-you-go solutions with A-rated carriers designed to meet the risks and needs for more than 900 class codes throughout the nation.
Let Syndicated help you start benefiting from reduced workers’ comp rates today.
Call us for a free, no-obligation quote to get started: 877-333-8195
Brokers get a free quote using this simple 12-question form: http://bit.ly/3pJ5fFq
Let us help you start benefiting today!
by Syndicated Insurance Resources | Oct 22, 2020
While the pandemic has made the world feel and look different, every business is facing the same choice: Shift or Dissolve.
This struggle has been happening in various ways for decades.
When technology crept into the insurance industry years ago, many brokerages faced a similar choice. Those who changed how they delivered products and services flourished—while those who did not found generating attractive returns challenging.
COVID-19 has created another ‘shift or dissolve’ hurdle. Instead of looking at “new normal” challenges as a catastrophe, why not look for the possibilities in the hardships? With a few simple changes, you will find ways to exceed your expectations.
Benjamin Franklin once said, “Out of adversity comes opportunity.”
Easy “New Normal” Shifts To Make
Consider shifting the way your insurance agency conducts business and supports customers. Here are some easy options you will want to implement if you haven’t already.
Deliver Consistent Customer Service. When your livelihood surrounds managing risks, putting customers first is what you do. But a global crisis makes doing so more challenging. Find ways to practice compassion and flexibility in today’s chaotic environment.
Seek to Understand & Help. Changing financial circumstances may find some of your clients contemplating canceling insurance policies. Listening will help you display compassion and learn useful information. Don’t wait for clients to call you. Reach out to them first. Proactively help your clients assess their risks and optimize their choices.
Seek Feedback from Customers. Phone calls and online surveys with incentives will help you validate what you think your customer is experiencing. Use real-time feedback to verify problems caused by the pandemic and uncover topics customers would like education on. Survey prospects and customers to learn their needs and what is keeping them up at night.
Change Processes & Smooth Rough Spots. Building strong relationships with customers includes making changes to meet them where they are – especially during challenging times like these. Uncover toe-stubbing procedures and tweak them, so it is easier for your customers to do business with you.
Remove Barriers & Obstacles. Navigating multiple platforms and trying to reach carriers by phone is frustrating. Many brokers share frustration finding quotes in a timely fashion. Logging in and out of various systems is labor intensive. Make changes that help you customers get what they need easily.
At Syndicated, we responded to this need by adding an online form with 12 questions. This simple change helps brokers—like you—get solutions quickly without logging in. Would you like to get workers’ comp options without a hassle? Click here now.
Selling insurance in the “new normal” requires shifting for survival. If you make subtle changes to meet your customers’ needs, you’ll do more than survive—you’ll thrive.
Want to discuss other ways to find options for the hard-to-place? One of our relationship managers are happy to help you get what you need.
Contact us today at 877-333-8195 or [email protected].
