Avoid Snags in Workers’ Compensation Submission Process
Nowadays, and lately truer than ever, consumers expect their products and services as fast as possible. Big corporations like Amazon and Walmart have been at the forefront of driving this consumerism thought. Along with that “now-now” expectation, we all still want quality and the best we can get for our buck.
Workers’ compensation insurance is not immune to this. If a client provides you with details of their business, they probably expect you to be able to produce a quote almost instantaneously. The best coverage, endorsements, and, of course, rate they can get. The instantaneous part is not often feasible, as there are many considerations during the workers’ compensation underwriting process. There are measures you, the agent, can take up-front with your client to ensure a more streamlined process, though. This means getting that quote into the hands of your client before they can say “workman’s comp!”
Knowing what is needed on an ACORD 130 or how certain higher risks may require additional things can be crucial. Any missing information means a snag in the process. Below are some tips for filling out the ACORD 130 and more to avoid these hang-ups in the process:
Include a brief description of business operations and employee duties (even if it seems obvious) as this helps with the correct classification.
Be sure to know what limits and effective date your client desires. This is simple but can have a huge impact if they were to take on a big loss.
If the prospect has carried WC coverage in the last three years then a copy of the last three years of loss runs will be needed before a quote is released from the carrier.
Assume higher risk businesses (e.g. roofing, logging, and most carpentry class codes) will need to provide a copy of their formal written safety program.
ALWAYS, always include the estimated annual W-2 payroll exposure and separate it by different employee duties or class codes.
Owner’s only or 1099 only exposures will need to be placed with NCCI as an assigned risk.
I am confident you will see a difference in turn-around time for workers’ compensation submissions if your agency implements the above tips. If you would like an ACORD 130 with all pertinent information highlighted, please let us know. I have been told this is a big help when a producer has a client in front of them. BDI’s WC crew is always an email or phone call away. Never hesitate to reach out if you have any questions. We are here for you!Share on Facebook Share on LinkedIn
Posted by Greg Bowen, Workers’ Compensation on Feb 15, 2021