Best Workers Comp Insurance Rates – 4 Steps
Looking for the best workers comp insurance rates in New York?
Confused by all the choices for workers comp there are in NY?
Searching for a solution to your workers’ comp issues or problems?
In this video and post, I’m going to give you the low down on how to find the best rates or premiums on workers comp in New York, coming right up.
Okay, so you’ve clicked on this video about the best rates for workers comp in NY.
I’m guessing that you’re experiencing some pain or dissatisfaction over what you currently have, or you’re a first-time buyer and looking for the best workers comp coverage.
In either case, I’m going to show you the steps you can take to get the best value and price on workers comp in New York.
Let me take a minute and set the stage so we have some context here, and what I’m going to tell you isn’t brag or some big old self-promotion.
I’ve been in the insurance business for 40 years and own my boutique brokerage.
I’ve focused predominately on commercial or business insurance for most of my career because I love working with and helping business owners with the problems they face with insurance and risk.
I have a degree in risk management and another designation specifically in workers’ compensation.
I have studied workers comp extensively because I believe it to be the most controllable line of insurance there is, and because it’s often the most costly line of insurance for many businesses, my focus here has paid big dividends for my clients.
Okay, with that out of the way, let’s get to the steps you can take to get the best rate on workers comp in New York.
Safety, compliance, risk control, injury prevention, and a good loss history are all critical first elements and the biggest determinant in getting the best rate on workers comp there is.
Don’t have a great history on claims?
Don’t have a culture of safety in your business and struggle with basic safe work habits?
Wish you knew where to start?
Look, I get it. Safety, risk control, injury prevention, and getting employees to follow basic rules aren’t always easy.
But getting these elements under control and in place is a critical first step.
Without them, you can forget to gain an advantage in the marketplace because these are the first things an underwriter is looking at when determining whether they will even quote your account and then how competitively they will dig into offering you great pricing.
If you don’t have confidence in this area, I can help you.
It doesn’t turn around things overnight, but I have successfully helped firms in different industries and sizes gain the upper hand in fixing problems with safety, risk control, and injury prevention.
The sooner you start, the better off you’ll be on your workers’ comp pricing journey.
The bottom line is that there is no magic bullet here, but let’s chat and see where we can help.
Second, on my list of steps, you can take on workers comp is auditing and verifying the accuracy of your experience rating modifier.
I’ve done several videos on what the mod is and how it’s calculated that you can see here: What is the Workers’ Comp Experience Mod?
The experience mod is your company’s score, if you will, on how well you perform on claims relative to the amount of payroll you have in each class code.
The calculation of the experience rating formula is complex and can be prone to errors.
Unfortunately, your insurance company and your broker are not required to audit or test or even review your mod for accuracy.
That means your mod could be incorrect and cost you thousands of dollars a year in overcharges.
It may also mean that it’s preventing you from getting the best deal because underwriters are throwing your account out as ineligible for the best pricing, when in fact it may qualify if the mod was accurate.
So, how do you know if the mod is right or wrong?
You need to audit it and we can help you there to make sure you’re not being overcharged unnecessarily.
Another audit function that most brokers don’t undertake is a review of your class codes.
Class or classification codes are a fundamental step in rating your workers’ comp policy.
Get it wrong here and you may be getting overcharged unnecessarily.
Again, your insurance company is not required to determine if the class codes on your policy are right or wrong – they should when you have your payroll audit, but often the payroll auditor is not looking for ways to save you money – they are looking for money making opportunities!
And your broker, if they are not skilled at workers comp may not even think to review operations and seek out options or alternatives to the class codes on your policy.
One footnote I want to make about class codes is that it’s not as simple as saying I want to go from code **** to **** and pay xxxxx less per hundred of payroll.
Class code changes need to be thought out, accurate and have an actuarial foundation before being approved by your insurer and the rating board in your state.
Choose the right broker.
Okay, I know this sounds very self-serving but hear me out.
If your insurance broker does a little commercial insurance, a little home and auto insurance, a little group benefits, and a little life insurance they probably don’t have deep domain expertise in something like workers comp.
I mentioned earlier that I’ve studied and attended numerous courses on worker comp because I find it so interesting – I’ve earned designations in this stuff, so I get it.
The point is that you want to work with a broker that not only has expertise in workers’ compensation insurance but also (and) represents the top insurance companies with the best rates in NY.
Someone who will take the time to understand your situation and who has the tools and resources to fix the issues or problems you may be facing.
That broker can be me, or someone else with similar skills. Whoever you choose needs to be a trusted advisor and quarterback to get you through your issues and over the goal line.
Here’s the bottom line.
If you have all of these elements in place and things are moving along nicely but you just feel like your broker doesn’t understand the complexity of workers comp, then let’s chat.
Or if all is going well but your broker hasn’t performed a thorough canvass of the marketplace in the past several years, that’s another reason we should chat.
But if things aren’t working in your favor, like claims are out of control and premium costs are through the roof – you need an expert and that’s even more reason for us to chat.
I’m one of the few insurance brokers in New York with multiple professional designations to their name and deep domain expertise in workers comp that can make a difference to your bottom line.
One bit of good news before I wrap up.
The workers’ comp insurance marketplace in New York is more competitive now than it’s ever been.
There are more insurers and more options now than there have been for over 40 years, and that’s good news for all business owners.
Options, choices, and a competitive marketplace give you the upper hand in finding the best rate on workers’ compensation.
Have questions or issues I didn’t cover here?
Want to learn more?
I encourage you to contact me.
My contact info is below and there’s a link to my calendar there where you can book a call.
I promise when we speak – no hard-core selling or gimmicks.
I understand you want to find out more but don’t want to be sold, and I get that.
So let’s find time for a conversation and see if what I do can help you and your situation.