Just a quick sharing of a best practice.
My insurance provider (a fee based advisor NOT a broker) called me today to assist me to update our revenue and labor cost estimates used for our general liability and work comp coverage since our revenue and wage and salary costs will certainly be below our forecast which was used to calculate our premiums.
Obviously I could wait and get a credit after the year end audit but I would rather have lower costs (and keep my cash) now instead.
If your broker did not make the same suggestion and assist you, ask yourself if your broker works for you OR the carrier (who pays them!) that is why we recommend fee based advisors for business insurance and healthcare instead of brokers who work for their respective carriers.
Keep in mind, your employees working from home will likely be classified at a much lower rate-especially if they are field sales people, people associated with engineering, research or factory overhead since they all carry a higher cost risk category rating.
Make sense? If not, give me a call.
We will be sharing other best practices on cost reductions as we all prepare to get back to “normal”-whatever that is!
We will keep you advised on our CFO Forum meeting schedule. At this point, we are assuming that face to face meetings will NOT be held in May. Zoom is a possibility-especially for the R&D tax credit meeting planned for Friday May 15. I just reviewed the list of firms applying for the credit and a lot of you appear to be leaving an opportunity untapped.