How to choose the Best Workers Compensation Insurance in New York
Hint: The lowest quote may not be your best choice, here’s why…..
When you think of the best of something, especially when it comes to insurance, the first thing that comes to your mind may be the least expensive, or the cheapest. There’s no doubt that one workers compensation quote that’s less expensive than another quote would seem to be the best choice. But is it? So, how do you go about to choose the best workers compensation insurance in New York?
The interesting thing about workers compensation in New York is that there isn’t much variation in the coverage from one policy to the next. There’s not a lot of endorsements which can be added or subtracted from a New York workers compensation policy so from a coverage perspective there really isn’t a best policy. So that reinforces the idea that the best is the least expensive, right?
Not really. Yes, the lowest cost option may be one of the best solutions, but what does that worker’s compensation policy come with? What services to help you control worker injury risk are included? Does the broker proposing your policy provide any services, in insights into keeping workers safe and preventing claims? Will your broker provide you support with claims? Do they perform a claims review of open claims quarterly (for large accounts) or annually for smaller accounts?
This is what can make the difference between a good workers compensation quote and the best workers compensation quote or policy.
The simple fact is that the cost of workers compensation insurance is driven largely by claims experience and your experience rating modifier or “mod”. If you don’t have the support to control claims or manage them after they occur then you’ll end up paying substantially more for workers comp down the road. A cheaper policy today doesn’t mean it’s the best policy tomorrow. This is especially true of firms that are larger, have more risky operations, and pay more than $25,000 per year in premiums. If you’re firm is smaller, or a white collar type of enterprise and your premiums are under that $25,000 threshold then risk control and claim services may not be that important.
The bottom line is when you evaluate what the best workers compensation insurance choice is in New York, you’ve got to look at more than just the premium quoted. The larger, more complex your firm is, the more you need to dig into what services your insurer and more importantly your broker is able to provide to you to help you control risk, minimize loss, and control claim costs. Without these three elements, you stand the chance of increasing your costs dramatically in the future.
Want to learn more about how The Coyle Group helps their clients reduce and control risk? Contact me at the number or email above and let’s have a conversation.