Four Ways to Create a Compelling Underwriting Case
Staffing Insurance: Workers’ Compensation
Understanding the information needed to accurately price your Workers’ Compensation insurance program is crucial in getting the best program and price possible. I work with underwriters on a consistent basis, and from my conversations, developed a “cheat sheet” of items that will help your staffing company create a compelling case for underwriting.
1. Updated Loss Runs
Without updated loss runs, most companies will not even receive a quote from an insurance company. Underwriters look for trends, such as:
- What body part is injured the most?
- Is there a problem at a specific client site?
- What day of the week are injuries occurring?
- How many open claims are there?
- What reserves are set aside?
Make sure the loss runs are current, meaning the losses are valued within three months of the present date.
2. Safety/Risk Management Culture
Painting a picture of your company’s stance on safety and risk management might be the most important piece when pricing your Workers’ Compensation insurance. If you can provide items such as employee handbooks, safety manuals, interview processes, drug-free programs and training orientation materials to an underwriter, this will prove that your company is proactive instead of reactive when it comes to claims. Businesses that prove they have a safe workplace culture and effective client screening process tend to get much better pricing.
Although not mandatory (depends on premium size and the insurance company), providing business financials can be a benefit when pricing your account. Just like business owners want to be insured by financially stable insurance companies, insurance companies want to insure financially solid staffing companies. Proving you have a financially stable company through income/balance sheets will help create a compelling case.
4. Industry Involvement
The last item – although not a tangible one like the last three – is just as important. Being an active member of associations, local chapters or staffing network groups has countless benefits. One being, most insurance companies you work with are part of those same industry association. For example, at ASA Staffing World a few months ago, there were at least five insurance companies that had booths set up and are active member of the largest staffing association in the country. Members of any organization or association want to help other members out; joining one will give you a lot of resources and benefits.
All in all, the more evidence you have on why your business is a good risk for an insurance company, the better off you’ll be. Providing underwriters with these key pieces of information is a great start in getting the most competitive program possible.
- Register for Back to Basics: Workers’ Compensation Seminar (7/30)
- Register for Deep Dive: Workers’ Compensation Seminar (8/6)
- Register for Bottom Line Impact: Workers’ Compensation Seminar (9/16)
- Watch How to Create a Safety Culture Webinar
- Status Update: Staffing Workers’ Compensation Marketplace
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