It's no secret independent insurance agents love to shop for their clients. Think of them as the best gift-givers around! When it comes to shopping for Workers' Compensation insurance, your agent's job is to find a carrier that's the best fit for your business, but the process is a little more complicated than you'd think. Selecting a carrier based solely on economic decisions might not be the smartest choice. And while price is definitely important, it's not the only factor. As an owner or manager it's important to understand the process when it comes to your Workers' Compensation insurance.
Check out these five key factors your independent insurance agent is considering when recommending a Workers’ Compensation carrier.
- Financial Stability: Your Workers' Compensation carrier needs to be financially strong. If they had to pay out a large portion of policies, would they be able to do so? It's important to know before you have to file a claim. A.M. Best is a company that rates insurance carriers' Financial Strength Rating (FSR), which represents their ability to meet commitments to policyholders.
- Claims handling practices: If the unfortunate happens, how fast would you want the carrier to respond to a Workers' Compensation claim - immediately or several weeks after the incident? Time is money when it comes to business and you can't afford to wait. Carriers track claims response rates and the ones that are highly rated are likely to toot their horn and let you know about their timely and helpful service.
- Risk management resources: Top insurance carriers should have a library of resources available to help your business maintain a risk-free work environment and information on return-to-work programs. The best part is that access to these resources is usually included in with your Workers' Compensation policy.
- Experience in your industry: You would never take your BMW to a mechanic that doesn't specialize in imports because they would have little experience with your German engine. That's the same reason why you shouldn't select a carrier that has little-to-no knowledge of your business. Experience in your industry is important so they understand your needs to provide adequate coverage.
- Tenure in the industry: A carrier who has only been selling Workers' Compensation coverage for 6 months might be more of a risk for your business as opposed to another who has a strong book of business selling Workers' Compensation coverage for more than 30 consecutive years.
Leaving the shopping to Lakeside Insurance Brokers to not just give you the best possible Workers' Compensation coverage for your business, but the peace of mind that comes along with it.