As an independent agency, you are tasked with multiple lines of insurance which is sometimes quite the mountain of work and responsibility. With workers’ compensation (WC) being the only line Omega writes, we tend to know the many pitfalls’ agents and CSRs fall into when submitting a risk for a WC quote. Below are the most common mistakes I see daily:
- FEINs are ALWAYS needed to obtain a quote. Their tax id becomes the line item needed to reserve various markets. Be sure to add this # to the WC ACORD.
- Employers’ Liability Limits: Many ACORDs received are missing the limits of part 2. Part 1 WC, has no limits. We need at least the statutory limits of $100k/500k100k or increased limits of $500k/$500k/$500k, or $1M/$1M/$1M.
- INDIVIDUALS INCLUDED / EXCLUDED: This section is often misunderstood, and we see employees’ information listed. However, this section is strictly for officers/owners and should always be completed. Note, we do not need their DOB or SSN.
- DESCRIPTION OF OPERATIONS: Most submissions we receive leave this box blank. Please list what they do.
- GENERAL INFORMATION: All the questions should have a yes or no answer. For those with yes responses, especially questions about sub-contractors, or heights should have an explanation in the remarks section below.
- LOSS RUNS: If a risk has prior WC history, loss runs are needed. Be sure the loss runs have a current run or valuation date. Current is within 90 days of submission date. We see many loss runs that are years old and useless.
- BEST PRACTICES: The best agents do a little due diligence before submitting; checking corporation status, prior WC history, their website to be sure it aligns with their description.
- CLASS CODE: While Omega can assist in helping find the correct class code especially for new ventures, you can call 1-800-NCCI-123 to get quick advice. For risks with prior, we recommend using the class codes on their expiring policy rather than leaving them blank.
- # of EMPLOYEES: Knowing the # of employees by class is very helpful in our risk analysis.
- For MULTI-STATE RISKS, we must have a minimum of one physical address for each state. Also, the class codes and payroll under Rating Information should correspond the state locations.
- EFFECTIVE DATE: This is blank on many submissions, adding a desired effective date is best practices. For risks with continuing coverage, the effective date should match their expiring policy.
- Omega stands ready to help quote your next WC risk. Be sure to visit our website for our many other WC articles to help you and your staff understand WC.
Tools:
Non-Florida: ACORD 130. Click here for our fillable version online.
If you are new to workers’ compensation or would like tips on completing this ACORD click here.
Also, Click here for General Tips for Quoting WC
Florida specific WC ACORD 130-FL (2019/7). You can use our fillable version on our website. Be sure to save it before emailing it to me.
If you are new to workers’ compensation or would like tips on completing this ACORD click here.
Disclaimer: The above information is provided from 25+ years of experience with writing workers’ compensation. The above accuracy is limited to my own knowledge, research, and experience.
