Insurance Best Practices

Choose Wisely
Selecting a Workers’ Comp Carrier to Take Care of Your Greatest Asset
By Mark Gruber

With all that’s on your plate as a business owner, finding good workers’ compensation insurance probably isn’t on your A-list—if it even makes the list. That task may soon rise to the top.

As you know, the hurricanes that battered Florida sent several powerhouse property/casualty insurance companies packing—and with them went quality, affordable workers’ comp coverage. You also know who’s bearing the brunt of those moves—you, as a small or midsize business owner who already faces escalating insurance costs.

So if you haven’t buried yourself in the Yellow Pages looking for a new workers’ comp carrier yet, it probably won’t be long. When that chore becomes a top priority, here are some important considerations to help you and your insurance agent find the best option for taking care of your greatest asset—your employees.

Quick Quotes

There is nothing more valuable to you as a business owner than your time. Many insurance companies now feature online quoting and underwriting systems that shave hours, days or even weeks off the quoting and submission process. Ask your agent to find a workers’ comp company with online, quick quote turnaround so you can get several premium quotes and compare.

Time really is money when it comes to the impact of web-based quoting systems on your business. But as you’ll discover as you continue reading, searching for a reliable workers’ compensation carrier is about much more than finding the lowest price.

Local Presence

When you really need your insurance company, you really need your insurance company. The last thing you want is a customer service department in another time zone, or maybe even another country, and an out-of-state insurance agent who doesn’t know you or your business. A company with a local customer service presence will answer the phone in person and in your area during your workday. A local insurance agent is an invaluable go-to contact.

A dedicated underwriting staff in your area also will better understand your business and the current market, and can offer more informed risk analysis—meaning better rates for better risks. A local loss control staff can evaluate the safety of your work site, and claims professionals will have researched top-notch medical providers in the area.

Loss Control Services

An ounce of prevention is worth a pound of cure, right? A capable loss control team can help you realize significant savings in annual premiums and help reduce the risk of workplace injuries with a few simple action steps. Effective hiring practices, safety training “tailgates” and vehicle operating standards are some of the positive results of an onsite loss control evaluation. Some insurance companies even have access to libraries of safety videos that can be rented at no charge for employee training sessions.

Return-to-work Claims Processing

Perhaps most critical in your selection is a carrier with an in-house claims organization that works directly with you—not just to fairly settle claims, but one that is laser-focused on returning injured employees to work when possible. Studies show that employers with well-defined return-to-work programs save up to 40 percent on insurance rates and medical, disability and lost-time costs. A return-to-work action plan also improves employee morale when you get workers back in the game.

A claims team that is in tune with return-to-work initiatives also is active in establishing a medical provider network that understands the workers’ comp world and can administer the right treatment the first time—more cost savings for your business.

Long-Term Stability

Fly-by-nights are not the route to go when putting the safety and security of your employees in someone else’s hands. The workers’ comp landscape is littered with companies that entered a state to write new business during favorable market conditions, and then pulled out when the market softened—similar to what has happened in the Florida market the past few years.

Before you sign on the dotted line with a business insurance carrier, ask your agent some vital questions: How long has the carrier been in the state? In how many states do they currently do business? Have they ever left a state? What is the financial stability rating of the company?

Bottom line…selecting a workers’ compensation insurance carrier won’t be the most invigorating thing you do with your business day. But the future of your business may rest on your choice.

Mark Gruber is the Southeast Region Manager for FirstComp, a national leader in the workers’ compensation industry. Servicing nearly 100,000 businesses in 28 states, FirstComp specializes in delivering superior service to small and midsize businesses in Florida and around the nation. You can reach Mark or another member of the Florida team by calling 888-500-3344.

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