Whenever you have a commercial client seeking workers’ compensation (WC), this quick review will help you to think like an underwriter, allowing you to obtain quicker responses from underwriters. The most important factor is to remember that WC is all about the employee and what risks or hazards they are exposed to based on what they do. Here are some bullet points to help you:
- Construction Risks: Typically, construction risks are the heaviest to consider so knowing what they do is critical. Provide a detailed description of operations.
- What are their % of sub-contractors? Do they only use insured subs or exemptions?
- What is their maximum height exposure and what fall protection do they use?
- Are employees paid on W2 or 1099? If 1099, are they treated like employees only working for this company?
- Hospitality: Restaurants & Hotels and other hospitality risks have similar exposures.
- Do they have any delivery exposure? If so, how much payroll for just delivery?
- What are the hours of operation?
- Any security staff? Armed?
- Social Services: From group homes to non-profit specialty services, underwriters will want to know exactly what employees will be doing.
- What types of clients do they have?
- Any clients with behavioral issues?
- Any domestic abuse victims?
- Is this a rehabilitation center?
- Stores: Basically, just find out the hours of operation and what they sell.
- Yard Services: From lawn care, landscaping to tree trimming.
- Underwriters will need to know if they do any tree or bush trimming above ground.
- Use the correct WC class codes.
- 0042: Landscaping is planting and maintaining plants, and mulching.
- 9102: Lawncare is mowing, edging, weed trim, blowing, ground-level tree trimming.
- 0106: Above-ground tree trimming.
- Experience: If the risk has prior WC, obtaining loss runs is essential. If they are new, find out if the owner has industry experience and advise with your submission.
- ACORD: Use the correct WC ACORD 130. In FL many agents do not use the correct FL version: ACORD 130-FL. For more information, see our article: Top Mistakes Made on WC Submissions | Omega Insurance Solutions
- Be sure the FEIN is listed on the ACORD
- Rating Information section should contain all applicable WC class codes, # of employees and payroll (remuneration) by class and state if more than one state.
- ACORD section Individuals Included/Excluded is only meant for owners & officers, not employees. Skip DOB and SSN in this section.
- Add a detailed description of operations.
- Answer all General Information questions with explanations for Yes responses.
- If you are new to WC, watch our video on completing the ACORD: Workers’ Compensation Training | Omega Insurance Solutions
- See our Quick Tips for Fast & Accurate Work Comp Quotes | Omega Insurance Solutions
- Supplemental: While not always required, having an added supplemental takes most of the guesswork out for the underwriter. We have supplementals on our website: Workers’ Comp Applications | Omega Insurance Solutions
These are a few ideas to help you think like a WC underwriter. Addressing the underwriter’s concerns up front allows them to quickly complete their review and offer a quote or declination based on their carrier’s appetite. At Omega, we help guide you through this process. For more information, see our FAQs: Florida Workers’ Compensation FAQs | Omega Insurance Solutions