While you may not be able to avoid premium increases, there are several things you can do to mitigate and prepare for these increased costs. Don’t wait for the waves to crash over the deck … take these action steps now.
#1 – Review current reserves to reduce your next experience modification factor.
Get your insurance broker or agent to obtain workers’ compensation loss runs for the last four years. Properly review workers’ compensation claim reserves well before (at least 6 months if possible) your information is forwarded to the National Council on Compensation Insurance (NCCI) for an experience modification promulgation.
#2 – Consider competitive quotes but be smart about marketing your insurance.
Too often insured’s simply ask their current agent to make sure they have the most competitive insurance quotes available. The unknown element is what “markets” your agent has access to. Agents make volume commitments and thus can only contract with a limited number of insurance companies. They might not have the ability to get quotes from the most competitive markets for your specific industry. If you are seeking competitive quotes from another agent make sure you “assign” the insurance companies who they are authorized to approach.
#3 – Ask for your quotes early.
Nobody likes the eleventh hour renewal surprise. Be clear with your agent about when you would like to receive your renewal quotes. While this is not entirely in their control, often it is and you can discuss the premiums and payment options without feeling like you have been forced to “walk the plank.”
#4 – Engage the services of a premium review and recovery service.
Firms such as AccuComp USA (https://accucompusa.com) specialize in premium review and recovery of overcharges on expired workers’ compensation policies. AccuComp USA operates on a contingent fee basis. AccuComp USA is paid a percentage of your refund only if, and when you received a refund. AccuComp USA does not sell insurance and does not solicit any quotations.
#5 – Consider hiring a licensed “Certified Insurance Consultant.”
Consultants will charge a fixed fee to review your coverage, draw up a set of specifications and manage the quotation solicitation process. The consultant will not be selling you the insurance but presenting you with the options that have been developed from the insurance marketplace. Their fee will be a small percentage of your annual premiums. Never be drawn into a firm that charges you based upon reductions in your current and future premiums. Not only is it illegal to charge a contingent fee for the saving associated with the placement of insurance it is nearly impossible to determine if you have achieved saving or merely traded premium reductions for lesser coverage.