Is Your Business Insurance Strategy Holding You Back?

Many owners don't realize that they have small business insurance coverage gaps until they find out the hard way. Your general liability coverage could be outdated. Health insurance might not be integrated with HR. A lack of voluntary benefits could be holding your business back.

Having coverage isn’t the same as having complete protection. When you identify some of the most common gaps and work with an integrated partner solution, it can reduce risks, streamline compliance, and ultimately save you money.

1. Outdated General Liability Coverage

A traditional general liability policy is a "set-it-and-forget-it" affair. You pay a large up-front sum for the policy, and then it seems like it's on autopilot. However, your business revenue and personnel might fluctuate. This can leave you with less coverage than you need, or you might be paying for more coverage than necessary.

PayGo is a pay-as-you-go insurance model from Exact Payroll. This allows your liability coverage to be in sync with your payroll and business operations. Your insurance is calculated in real-time with payroll, so you always have the right amount of coverage.

2. Workers’ Comp That Doesn’t Talk to Payroll

Many businesses are still tracking their workers' comp data separately from payroll. Doing it the old-fashioned way can set you up for the pain of an unwanted workers' comp audit. It increases the risk of miscalculations and reporting inconsistencies. These mistakes can lead to expensive compliance penalties.

An integrated system that links workers' comp to coverage to payroll is the solution. It eliminates the tedious process of manual tracking. You'll also experience fewer errors and more accurate reporting. By streamlining these systems, you'll be able to maintain precise, real-time data and stay ahead of audits.

3. No Voluntary Benefits = Lower Retention

If you're not offering voluntary add-on benefits in this day and age, you're likely to lose some of your top talent to competitors with more comprehensive offerings. Many workers today expect offerings that exceed basic coverage. These can include wellness plans, financial planning, or even pet insurance.

Voluntary add-on benefits can make a big difference in employee job satisfaction and retention. Without them, you may struggle to keep your best employees engaged and loyal.

The good news is that you don't need to break the bank to provide voluntary benefits for SMBs. You can partner with providers to add voluntary benefits like life insurance, student loan assistance, and more. This can create value for your employees without straining your budget. Voluntary benefits can give you a competitive edge, improve employee retention, and foster a culture that prioritizes long-term well-being.

4. Health Insurance Lacks HR Integration

Managing health insurance separately from HR systems creates a hidden drain on resources. It creates an unnecessary administrative burden. If you don't have seamless integration between HR and your health insurance, you're likely to be doing manual data entry, which can lead to inconsistencies between platforms. An integrated system that links workers' comp to payroll saves hours of manual work and helps you avoid audit-triggering errors.

You can avoid these challenges by opting for health insurance that integrates with payroll and an HR Information System (HRIS). Streamlining these systems ensures smooth benefits administration, regular updates, and automatic compliance tracking. The result is less paperwork, fewer mistakes, and a system that benefits your business and employees.

5. You’re Not Offering Wellness Support

Without wellness support, your employees can suffer from stress, burnout, and preventable health issues. Offering your employees wellness support isn't just a perk for them--it's also good for your business. Unhealthy employees experience more absenteeism and file more healthcare claims.

Offering wellness programs empowers your employees to take charge of their own health. Fitness programs, mental health programs, and preventive care initiatives are examples that can pay back dividends to your business. You'll have fewer claims and lower long-term healthcare costs with a healthier workforce. Supporting your team with wellness support will lead to happier, healthier, and more productive employees.

Fill the Gaps, Stay Protected

Don't let small business insurance coverage gaps hold you back! These gaps can lead to unnecessary financial strain, compliance problems, and a dissatisfied workforce.

Before the next renewal cycle, take time to audit your business insurance strategy. These five areas are some of the most common (and costly) blind spots. Exact Payroll can help you close those gaps.