A few items to consider for a guaranteed cost workers’ compensation policy

Reduce Your Workers’ Compensation Premium
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Experience Modification Rate

  • Inaccurate Experience Modification Rate – When a claim is mishandled and more dollars are spent the claim than should be the EMR or Experience Modification Rate will be higher that it should be resulting in an incorrect higher premium being paid by the employer.
  • Loss of Schedule Rating Credit – Insurance carriers look at loss history like you look at your check book! They pay very close attention to claims and the amount of dollars going out. Whether it’s their company or not, loss histories paint the potential profit picture of any employer. So when claims are incorrect and extra dollars are picture is not pretty. Claims have a negative effect on the way an insurance company looks at the employer from a risk stand point. Schedule credits may be removed, reduced or not applied at all. And this will have a direct effect on the premium the employer pays.
  • Loss of Acceptability into Preferred Programs – When it comes to pricing workers compensation policies insurance carriers typically have multiple pricing tiers filed with the states where they conduct business. These pricing tiers provide multiple levels of rates at an underwriters disposal. You’d be surprised at the difference in rates between some carriers preferred tier compared with their standard tier. Think 20-50%! Each tier will have certain underwriting criteria requirements in order to qualify. Poor loss experience through poor claim handling can mean that an employer will not qualify or maybe no longer qualify for preferred pricing. This can have a significant impact on the premium an employer may pay.

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