Questions to Ask Your Insurance Agent or Broker Ahead of Workers’ Compensation Policy Renewal
Recently, we wrote about the New York Compensation Insurance Rating Board (NYCIRB)’s recent filing of loss cost rates for 2018-2019. Ahead of the renewal, Rose & Kiernan, Inc. is now having conversations with our current clients on this subject ahead of your upcoming workers’ compensation policy renewal. We create an internal tool that allows us to give guidance to each individual business insurance client based on their exposures. It provides an overall estimate/impact on their premiums based on a “rate view” only.
Any time there is an update, this opens up a broader conversation. In this case, the conversation centers around organizations and the questions that they should be asking themselves regarding their overall premiums and policy updates. If you don’t know these answers… ask. Such questions can help shape conversations with your insurance agent/broker to make sure you are properly informed and updated.
Do you know…?
- What’s the overall estimated impact to your total Workers Compensation premium?
- Are you confident the proposed Workers Compensation rate decreases will be passed on to you at your upcoming renewal?
- Some carriers may try to re-tier policies into higher Loss Cost Multipliers (LCMs). This is to get back to the overall pricing they were at before. Has your insurance carrier been steadily increasing the LCM?
- On the other hand, other carriers are releasing/quoting on lower LCM’s to acquire new business. This is compared to historical norms.
- What’s the basis for these recent changes?
- Is there a long-term impact of these rate changes on your overall premium including experience modification?
- Are these rate changes sustainable?
Is your insurance agent/broker…?
- Actively reviewing the big three rating factors (and notifying you of changes):
- Payroll classification (which class code you should be rated on)
- Loss experience/experience modification factor (including claim reviews and close out requests to drive the best experience modification possible)
- Insurance company rating structure (which tier/LCM are they using)
- Actively reviewing/consulting with you on what these changes mean for your upcoming workers’ compensation policy renewal?
To get in touch about business insurance, please click here or contact us at 800-242-2433.