Commercial auto insurance, workers’ compensation insurance, and other commercial policies require business owners to list the employees covered by the policy. Failing to list new employees can result in a denial of compensation if an unlisted employee is involved in an accident. Failure to remove old employees can increase your cost of coverage unnecessarily.
How to Add and Remove Employees
First, make sure you need to add a new employee to your policy in the first place. For instance, state law doesn’t require Grand Rapids, MI, business owners to purchase workers’ compensation insurance for contractors or employees who work less than 35 hours per week. If your new employee isn’t going to drive a company vehicle, you don’t have to add him or her to your commercial auto insurance policy.
If you do need to add an employee to a policy, collect all relevant information beforehand. To add an employee to your commercial auto insurance policy, you’ll need the employee’s personal information, license number, and motor vehicle record. If you’re adding an employee to a workers’ comp policy, you just need that employee’s personal information.
It’s a good idea to talk to your insurance agency beforehand if you plan to hire new full-time employees or add new employees to your commercial auto insurance policy. Insurers may have policy terms and conditions in place that could affect your plans, and knowing about these in advance could save you a lot of time and trouble.
Contact Dalessandro Agency Inc. for More Information
Our team at Dalessandro Agency Inc. serves business owners in and around Grand Rapids, MI. We’re well-versed in commercial insurance policy options and requirements, and we take pride in helping new clients find the right insurance coverage and assisting current clients in making changes to their policy. Call us today to get expert help and top-tier customer service.