Workers’ compensation insurance is a necessity for contractors in New York, New Jersey, and Connecticut. It protects your business from costly claims while ensuring injured workers receive the benefits they need. However, not all workers’ compensation providers are the same. Many contractors eventually realize their current insurance company isn’t meeting their needs and start looking for a better option.
If you’re considering switching, you’re not alone. Below are the 10 main reasons why Tri-State contractors change workers’ compensation insurance providers.
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1. High Premiums
One of the most common reasons contractors switch workers’ comp providers is the high cost of premiums. Contractors in the construction industry already face higher-than-average rates due to the physical risks associated with their work. However, some insurance companies charge more than necessary, taking advantage of contractors who may not shop around for better deals.
Solution: Working with a workers’ comp specialist like BGES Group can help you find lower-cost policies that still provide strong coverage.
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2. Poor Customer Service
When a workers’ comp issue arises, you need an insurance company that responds quickly and helps resolve problems efficiently. Unfortunately, many contractors deal with providers who are slow to answer calls, dismiss concerns, or provide little assistance when claims or billing questions arise.
Solution: Switching to a company with a reputation for excellent customer service can make a huge difference in how smoothly your policy operates.
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3. Claim Denials and Delays
One of the biggest frustrations for contractors is dealing with an insurance company that frequently denies or delays claims. When a valid workers’ compensation claim is delayed, it can cause financial stress for employees and create liability concerns for employers.
Solution: Contractors who experience frequent claim denials or long processing times should consider switching to a company known for fair and efficient claims handling.
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4. Frequent Audits and Unexpected Charges
Annual workers’ compensation audits are standard practice, but some insurance companies conduct aggressive audits that lead to unexpected charges. Many contractors get hit with unexpected premium increases or retroactive billing adjustments they weren’t prepared for.
Solution: Choosing an insurance provider with fair audit practices can help you avoid unnecessary financial surprises.
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5. Misclassification of Employees
Insurance companies use classification codes to determine workers’ compensation rates. If your employees are misclassified in high-risk categories, your premiums could be much higher than they should be. Some insurers don’t take the time to properly classify workers, resulting in overcharges.
Solution: A workers’ compensation specialist like BGES Group can help review your classifications and ensure you’re not overpaying due to errors.
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6. Inflexible Payment Plans
Cash flow is always a concern for contractors, especially those working on a project-by-project basis. Some insurance providers require large upfront payments or rigid billing schedules that don’t align with a contractor’s financial cycle.
Solution: Switching to an insurer that offers more flexible payment plans, such as pay-as-you-go options, can help ease financial strain.
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7. Poor Safety Support and Risk Management Resources
Many insurance companies provide contractors with risk management tools and safety programs designed to prevent workplace injuries. However, some providers offer little to no safety support, leaving contractors on their own to reduce risks and lower claims.
Solution: Finding an insurer that provides strong safety programs and guidance can help reduce workplace accidents and lower long-term workers’ compensation costs.
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8. Insurance Carrier Is No Longer Competitive
Over time, some insurance carriers become less competitive. Maybe they started with great rates but have gradually increased premiums. Or perhaps they once had strong claims support, but service has declined over the years. If your insurer isn’t keeping up with industry standards, you could be overpaying or receiving subpar service.
Solution: Regularly reviewing your policy and comparing it to other options ensures you’re always getting the best deal.
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9. Industry-Specific Coverage Needs
Not all workers’ comp policies are created equal. Some insurance companies offer basic coverage that might not fully address the specific needs of contractors. Whether it’s coverage for specific job-site risks, additional protection for certain trades, or better return-to-work programs, contractors often find that their current policy lacks essential benefits.
Solution: Switching to an insurer that understands the unique risks of your trade ensures you have the right level of protection.
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10. Better Alternatives Are Available
At the end of the day, many contractors switch simply because they find a better deal elsewhere. Whether it’s lower premiums, better customer service, or more comprehensive coverage, there’s always an opportunity to improve your workers’ compensation insurance situation.
Solution: Working with a workers’ comp specialist like BGES Group can help you identify and transition to a better provider with minimal hassle.
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BGES Group: Your Workers’ Compensation Specialists
If you’re a Tri-State contractor considering switching workers’ compensation insurance companies, BGES Group can help. We specialize in workers’ comp insurance and have deep expertise in helping contractors find the best policies for their needs. Whether you’re dealing with high costs, poor service, or claims issues, we can guide you to a better solution.
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Contact BGES Group Today
• Contact: Gary Wallach
• Phone: 914-806-5853
• Email: bgesgroup@gmail.com
• Website: www.bgesgroup.com
Switching workers’ compensation insurance doesn’t have to be stressful. Let BGES Group find you the right policy at the best price. Contact us today for a consultation!