6 Questions to Ask Your Insurance Agent About Work Comp

May 24, 2023 • Previsor

As a business owner, protecting your employees should be a top priority. That’s where workers compensation insurance comes in. It provides coverage for medical expenses and lost wages if an employee is injured on the job. It also provides death benefits in the event of a fatal incident and, in some states, can protect your business from lawsuits.

While required in most states, not all work comp policies are created equal. It is crucial to understand what is covered under your work comp policy. Here are six essential questions you should ask your insurance agent about work comp insurance.

What does the policy cover?

Work comp providers must conform to statutes on coverage terms, limits of liability, and benefits. To this extent, you’ll get the same insurance policy from any carrier. Beyond that, however, many variables determine your policy’s value. Ask your insurance agent to explain the types of injuries or illnesses that are covered under the policy. In addition, ask what additional value-added services your insurance carrier will provide.

How is premium calculated?

The premium is the cost of the insurance coverage. It is important to understand how the premium is calculated and if it includes any discounts or credits. Work comp premium is calculated based on 3 elements:

  • Payroll. Make sure you’re providing your insurance agent accurate payroll figures so that you don’t end up paying too much or too little throughout the year.
  • Classification code. Find an agent that understands your business and industry so they identify the right class code and your employees are correctly classified.
  • Experience modification factor (e-mod). Work with your agent to understand how your loss experience impacts your e-mod, how you rate compared to similar businesses, and how you can improve your e-mod to reduce your premium in the future.

How does the claims process work?

In case of an injury, it is important to understand how the claims process works. Ask your insurance agent to explain the steps involved in making a claim. How long will it take to process? What documentation is required?

What is the role of the insurance agent in the claims process?

Ask your insurance agent about their role in the claims process and if they will assist you in filing a claim. A work comp claim can be a difficult experience, and timely reporting is critical. The right claims representative and nurse case managers connect injured workers with the right care at the right cost.

Are there any exclusions in the policy?

Exclusions are situations or conditions that are not covered by the policy. Make sure you understand what is excluded from the coverage. For example, sole proprietors aren’t automatically covered by work comp policies. Some may opt out of covering themselves to save costs.

What is the renewal process and what happens if I miss the renewal date?

It is essential to understand the renewal process and the consequences of missing the renewal date. Ask your insurance agent to explain the steps involved in renewing the policy and if there is a grace period for renewing.

It is crucial to have a clear understanding of your work comp insurance coverage. By asking the right questions, you can ensure that your policy provides the protection your business needs. Find the right policy for your business by finding an agent near you:

May 24, 2023
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