Workers compensation coverage can be one of the more expensive forms of business insurance. One key factor that plays a role in this cost is the annual review. Workers compensation insurance policies often require this review, which is a look back at the claims filed over the previous 12 months.
More claims usually translate into more cost for many companies. Companies can count on this process. Reviewing coverage before the end of the year provides a key benefit, though.
Review and Modify Coverage
Prior to the end of the year, take the time to review your existing coverage. There are several things to consider. Do this now so you can make changes as necessary.
1. How Many Claims has the Company Made?
The number of claims plays a role in what your costs will be next year. If your claims were higher than the previous year, you may expect rates to rise.
2. How Serious Were the Previous Claims?
The costlier claims are to pay out, the more risk your company presents to the insurer. Expect rates to go up if your claim rate increased from year to year.
3. What Steps Did You Take to Improve Safety?
Developing a safety plan is one way to reduce risks. Working on enhanced training can also help. Be sure to communicate steps taken to reduce claims to your insurer.
4. How Much of Your Coverage Did You Use?
As noted, the number of claims matter. So, does the severity of those claims. Additionally, look at your coverage limit. Was it enough to meet your needs? Should you obtain more coverage for the next year?
Review Your Information Carefully
Each of these factors plays a role in what you can expect moving forward. Your business insurance agent will help you to determine what to expect. However, you should also determine ways you can reduce your costs. Some companies may need less coverage. Others may be able to implement enhanced security methods to reduce risk. Take this into consideration before the end of the year.
With this information, determine whether you will renew or replace your coverage. Your business insurance agent can help with this process.
Try and take on this review before the end of the year. It could help you save money and directly impact your business' bottom line.
Looking to review your coverage? Contact Dean Heckle & Hill to get started today!