How to standout in the Workers’ Compensation Insurance Niche?

Workers’ compensation insurance is a profitable market for agents and insurers alike.

According to IBIS World, workers’ compensation insurance accounted for $55.1 billion of the US insurance market.  

Why wouldn’t you want to be a part of this billion-dollar market, right? 

The workers’ compensation insurance premiums went up 2.2% in the first half of 2019. 

The growing market size seems like an excellent pool for insurance agents to dive into.  

But with the vast market also comes great competition! 

How do you differentiate yourself in this opportunity pool of workers’ compensation? 

One of the traps independent agents fall into when it comes to workers’ compensation insurance is being complacent.  

Agents need to understand that, like any other line of insurance, this insurance also requires time and effort. 

Almost all policies are pretty much the same because you’re dealing with a statutory policy.  

More so, it’s easier to get one for cheap with so much competition in this industry.  

Demand and supply, right? 

Sure, you need to find cheap options for your clients, but what comes with it, that’s the essential part! 

You must make sure to provide value to your workers’ compensation insurance clients. 

It’s not just about selling the insurance at low cost but making sure that the clients come back to you after a workers’ compensation claim experience. 

Hence, quit talking about rates and focus on the cost for a client. 

How do you add value to your workers’ compensation insurance clients?

Correct classification

The classification code’s basis is the broad categories of services your client’s company provides and the nature of work.

How confident are you that your client’s business has correct classification?

A construction company might have its employees classified under different codes. For example the workers can have NCCI class code 5610 and a clerical office admin be under NCCI class code 8810.

A small difference in classifications can make a huge difference in premiums.

Sometimes, your client might have to pay higher premiums because of this difference. Workers’ compensation claims can also suffer due to this differentiation.
Remember, when you consult your client for workers’ comp, you must be well- acquainted with the type of business they run.
Ask them for details about the operations they handle, daily risks, and exposures their clients might face every day, and the technology they use.

The nature of operations also changes with the use of technology. Like Kevin Ring of Institute of WorkComp Professionals says, “Businesses are not static, and nor are classifications.”

Prove your value as an independent insurance agent and learn the classifications and how its rules apply.

Learn how you can flourish as an agent after one call!

Schedule a call right now and learn how you can ease your work, sell more, and increase your profits!

Workers’ Compensation Claims and Risk Management

“Prevention is better than cure.” 

Emphasis on risk management is a must when you’re advocating for your clients. Help your clients prevent workers’ compensation claims from happening in the first place itself. 

Risk reduction/prevention and saving costs should have a focus on these areas: 

  • Workplace safety procedures: 

Safety and compliance regulations in the workplace will dramatically decrease the chances of workers’ compensation claims.  

According to OSHA, employers pay almost $1 billion per week for workers’ compensation costs. 

Similarly, if your client has a long history of workers’ compensation claims, carriers might even be reluctant to renew the policy.  

Premiums will also be higher for clients with poor workers’ compensation claims history. 

Help your client understand this. 

  • Follow strict hiring standards: 

Hiring inadequate employees for massive physical works will increase the exposure to risks and chances of workers’ compensation claims.  

Your client turning a blind eye for strict hiring standards could expose their company to workers’ compensation claims more. 

Pre examinations, especially for physical jobs, should be a must for clients reaching out for workers’ compensation insurance. 

  • Occupational medical center:  

Your job as an independent agent is not to get your client their workers’ compensation claim paid. It’s to get the injured employee back to work, so your client is not paying for it. 

Ring suggests a back-to-work program for injured employees.  

Sending the injured at an occupational medical center or a physician who understands workers’ compensation insurance is much better than to a family physician. 

You should suggest your clients help their employees get back on their feet.  

For instance, don’t strain the injured employee, but don’t let them get out of work. 

Premium Audit

Premium audits don’t have to frighten your clients.  

As an agent, you can help them along this routine process together. 

Remind and prepare your client on the premium audit. 
Non- compliance of premium audit might result in charge up to 200% of annual premium estimation or policy cancellation. 

Ask clients to talk to auditors about daily operations so that employees have proper classification for each designation. 
Inaccurate tracking of receipts, payroll, overtime, and work expenses can increase premium unnecessarily. 

Lastly, remind them that you are always a phone call away. 

Above all, play your cards right to ensure your client gets workers’ compensation insurance and added value with it as well. 

Do you have any more recommendations for independent insurance agents to step up their game? Comment below and let us know. 

Learn how you can flourish as an agent after one call!

Schedule a call right now and learn how you can ease your work, sell more, and increase your profits!