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Changes in Workers’ Compensation policy

Changes in Workers’ Compensation policy

In 2006 there was a lot of talk about Agent of Record letters. Over the last few years, however, the subject has not been on our minds to the extent it was when the State of WV was no longer monopolistic. Occasionally, an agent of record request will dwindle in if a workers’ compensation client decides to switch to a new agent for one reason or another. Recently, there have been a few changes that are important to keep in mind when submitting workers’ compensation agent of record documents.

Encova (formerly Brickstreet) has in the past accepted agent changes at any time during the policy period. The change may not have meant that the new agent would be given commission immediately but would be considered the servicing agent. Most companies only have a small window of approximately sixty days that an agent change request can be sent prior to the upcoming renewal. Encova has now established a period of 10 days prior to the renewal of a policy that is blocked to accepting agent change requests. In the past, I have submitted agent of record requests the day before the client was to renew. With this new change in mind, however, it is very important to make sure the change is not sent at the last minute. We cannot let bad timing interfere with your client’s desire to move business to your agency and you being paid for your services.

It has come to my attention that there are still a large number of workers compensation clients that have never established an agent to represent them. Sadly, this has come to my attention because the clients have issues with audits and other challenges that they did not quite understand; they are upset, and only then ask a professional for help. The purpose of an agent is to represent your client, guide them through processes they do not work with every day and advise the client in their best interest.

We are facing some very difficult times and many of your clients have changed the way they are working to meet the current circumstances. When you are talking with your client don’t forget to ask them about their worker’s compensation coverage, it could be one of those policies that require an expert to handle.

Posted by Betty Douglas, Worker’s Compensation on Sep 28, 2020