With the COVID-19 pandemic continuing to change the course of the job market, employees have a renewed focus on how their workplace supports their health and wellness as a part of their total compensation. In response, many commercial businesses have opted to buy employee benefits packages with enhancements to attract and retain talent.
If you are one of those businesses, you have likely had to make swift operational changes in time for your next open enrollment period. As a result, you may have noticed your HR team taking the brunt of these changes as they learn to implement new and more extensive employee benefits. While this progress brings with it a range of positive outcomes to your bottom line, it can also introduce new risk that may require you to purchase employee benefits insurance or to reevaluate any existing coverage you have.
And as with any commercial insurance plan, buying employee benefits insurance without breaking the bank and getting the best coverage is a delicate balancing act. One of the most important factors to consider is when you should plan to have this coverage finalized.
Time is your best friend—especially during a hard market when you buy employee benefits insurance.
No matter how thorough you are in your risk management, mistakes are bound to be made on the administrative side, especially during such unpredictable times. Beginning your research as early as possible ensures any lapses involving your benefits administration are properly covered. Many business owners are unaware that general liability insurance typically does not cover incidents or litigation related to employee benefits administration, so promptly filling that coverage gap protects you from those potential losses.
Starting early is especially crucial right now because the insurance market has been hardening over the past couple of years. Waiting until the last minute could mean having less options to consider, likely with higher premiums for less coverage.
Keeping your broker in the loop.
If you partner with an insurance broker, giving them ample time is key. Try to notify them ASAP that you’d like to add employee benefits insurance to your existing coverage. This allows your broker to leverage their carrier relationships more efficiently and ensure you are getting the most competitive pricing for the protection you need. After all, carriers are focused on growing their new business after dramatic post-pandemic losses.
The bottom line.
When it comes to adding employee benefits coverage to your commercial insurance package, doing your research and making your buying decisions early can set you up for significant price reductions. Working ahead is an easy way to save your business from excessive costs and ensure you’re getting the exact coverage you need to protect yourself from significant losses.
Why partner with BlueStone to buy employee benefit insurance?
You may say, “But my rates aren’t going up” and “Renewal would be so easy.” Your current insurance provider is making a healthy profit from your coverage program. That’s why your rates aren’t going up. That’s why they are content with keeping your partnership “as is.”
We’ve had new clients that thought they had good coverage and good rates. We dug in and saw that the insurance company was actually making $800,000 from their program. Even though their rates only increased 4% over time, we found they should actually be paying less because of their track record and claims history.
It’s that type of advocacy for our clients that we bring to the table. We understand how the “sausage is made” in the benefits and insurance industries. And we can show you how to optimize your coverage and when to buy to uncover savings. Take a look at your current plan deadlines. If you’re approaching the 90-day mark, it’s time to start evaluating your coverage and shopping around for better options, if they’re out there. And if you need a hand or trusted partner who can help carry the process burden, connect with us today. It’s never too early to start.
Looking to better protect your business assets? Contact BlueStone Advisors today for a free consultation on how to switch business insurance providers for better coverage and transparent policies.