Piloting Through A Conditional Non-Renewal Notice
Developing a non-renewal strategy is essential for a best case workers' compensation renewal outcome. The following are several critical components to consider.
Flying NonstopA workers' compensation renewal is not an event, rather it's a continuous process that should begin soon after the last renewal is bound and implemented. You should meet with your insurance broker to discuss the past renewal and current action items for a more favorable outcome.
Air Traffic ControlThe best approach to control losses (and ultimately cost), as well as increase market options, is to have an effective loss control program. At any given time, regardless if your loss control program is new or mature, you should have at least three to five safety initiatives in place.
Cabin CrewDont solely rely on your carrier or third-party administrator (TPA) to handle claims. Your firm will need an active role that can provide details on the claim, status of employees, light duty jobs, etc. Partner with your broker's claim advocacy services to ensure your organization's claims are the adjusters top priority, reserves are set appropriately and claims are closed efficiently.
Early TakeoffHard market conditions require the renewal process to begin three to four months prior of the renewal date.
Mid-FlightSchedule a formal mid-year policy review with your broker. During this meeting, evaluate if he or she has brought your organization value beyond placing coverage.
Holding PatternState law and the specific terms and conditions of your insurance policy will dictate the carriers non-renewal requirements (usually 30-90 day notice). Should you receive a conditional non-renewal notice, the notification period will provide ample time to market your program, but you shouldn't dismiss the notice. Determine what your current carrier's position is on your renewal.
Final BoardingProvided you've implemented a loss control strategy and are actively managing your claims, you and your broker should be able to create a compelling marketing submission, inclusive of:
- Organization history
- Risk management practices
- Experience modification factor history
- Financial summary
- Loss summary
- Large loss detail
- Corrective action
- Ideal program structure
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