Carriers need to increase communication with their insureds. Mostly, they sell their products only to the agencies. Why should the insured know who the carrier is if the only time they hear from them is when a claim gets denied. The industry needs to overhaul the way it connects and sells to the “real customer” – the ones paying the premium. Until you have a claim, price dominates for the insured, because many times all they know about coverage is they either have it or they don’t. For many businesses, insurance matters are only dealt with at renewal time; it’s just not the part of business anyone likes or trusts.
The cost of work comp. can make or break a small contractor. Lots here are letting go their employees and hiring them on as subs. Take it or leave it.
Have heard of small contractors with employees that “just can’t afford the comp.” So they go bare.
Wrote GL on a very successful guy in business for 25 years. Found out he had employees but no comp. Ever! And didn’t want to buy it either. That’s plain ole cheap.
Only 12 states have state funds??? Maybe we have a definitional problem. If we define “state fund” as an entity created by the state to provide workers compensation insurance to that state’s employers, then we have Washington, Oregon, California, Arizona, Utah, Idaho, Montana, Texas, Louisianna, Missouri, Oklahoma, North Dakota, Ohio, New York, Pennsylvania, Maryland, South Carolina, Minnesota, Hawaii, Maine, Wyoming, Puerto Rico (okay, not exactly a state). That’s over 20, and I have probably forgotten a couple. The state funds operate very differently from state to state (“If you have seen one state fund, you have seen one state fund!”) Some are monopolistic, some competitive, some are state agencies, some function as “quasi-public corporations” or as mutual insurance carriers. The point is, as a group they represent the largest source of workers’ compensation insurance coverage in the country.
That’s what we; the Brokers & Agents, are suppose to do. If you are doing your job, your clients will understand their obligations and responsibilities in this portion of their business and if you’re doing your job properly, your client shouldn’t need to think much about his/her insurance during the year, you are taking care of that portion of their business for them.
That being said, anyone that has an insured that blatantly disregards the law and conducts business without W/C coverage on their employees has a major “Moral exposure” – if they will do that, what other part of their business are they “cutting corners” or being less than ethical in their dealings, with you and others. Are you then aiding them in the illegal activities, would you also assist them in filing a false police report? Or maybe embellish a claim to help cover the deductible?
It’s tough out there for all of us. Allowing this type of activity to continue is only enabling those who are bringing down our system and causing the rest to pay the higher cost to be “Good Corporate Citizens”
Carriers need to increase communication with their insureds. Mostly, they sell their products only to the agencies. Why should the insured know who the carrier is if the only time they hear from them is when a claim gets denied. The industry needs to overhaul the way it connects and sells to the “real customer” – the ones paying the premium. Until you have a claim, price dominates for the insured, because many times all they know about coverage is they either have it or they don’t. For many businesses, insurance matters are only dealt with at renewal time; it’s just not the part of business anyone likes or trusts.
The cost of work comp. can make or break a small contractor. Lots here are letting go their employees and hiring them on as subs. Take it or leave it.
Have heard of small contractors with employees that “just can’t afford the comp.” So they go bare.
Wrote GL on a very successful guy in business for 25 years. Found out he had employees but no comp. Ever! And didn’t want to buy it either. That’s plain ole cheap.
Only 12 states have state funds??? Maybe we have a definitional problem. If we define “state fund” as an entity created by the state to provide workers compensation insurance to that state’s employers, then we have Washington, Oregon, California, Arizona, Utah, Idaho, Montana, Texas, Louisianna, Missouri, Oklahoma, North Dakota, Ohio, New York, Pennsylvania, Maryland, South Carolina, Minnesota, Hawaii, Maine, Wyoming, Puerto Rico (okay, not exactly a state). That’s over 20, and I have probably forgotten a couple. The state funds operate very differently from state to state (“If you have seen one state fund, you have seen one state fund!”) Some are monopolistic, some competitive, some are state agencies, some function as “quasi-public corporations” or as mutual insurance carriers. The point is, as a group they represent the largest source of workers’ compensation insurance coverage in the country.
That’s what we; the Brokers & Agents, are suppose to do. If you are doing your job, your clients will understand their obligations and responsibilities in this portion of their business and if you’re doing your job properly, your client shouldn’t need to think much about his/her insurance during the year, you are taking care of that portion of their business for them.
That being said, anyone that has an insured that blatantly disregards the law and conducts business without W/C coverage on their employees has a major “Moral exposure” – if they will do that, what other part of their business are they “cutting corners” or being less than ethical in their dealings, with you and others. Are you then aiding them in the illegal activities, would you also assist them in filing a false police report? Or maybe embellish a claim to help cover the deductible?
It’s tough out there for all of us. Allowing this type of activity to continue is only enabling those who are bringing down our system and causing the rest to pay the higher cost to be “Good Corporate Citizens”