Navigating the workers' compensation policy renewal process

A guide for insurance agents

Navigating workers compensation insurance policy renewal for agents bold penguin glacier nature imagery
Tips

As the beginning of the year approaches, many businesses gear up for the essential task of renewing their workers' compensation policies. The weeks and months leading up to the new year are often marked by a flurry of activity from insurance carriers working to process these renewals. At the same time, agents must juggle finding alternatives to policies that have been non-renewed and continue to quote new business. As an insurance agent, being proactive and starting early can ensure a seamless process for your clients. 

The importance of workers' compensation for businesses

Workers' compensation coverage is not merely a statutory requirement; it's a safety net that protects businesses and their employees from unforeseen financial burdens stemming from workplace injuries. It ensures injured employees receive the necessary medical care and compensation for lost wages. Simultaneously, it safeguards businesses from potentially crippling lawsuit costs. 

For most businesses, workers’ compensation is their most significant insurance cost. As insurance agents, you play a pivotal role in helping small business owners find the right coverage for the right price.

Understanding the renewal process

Before diving into renewals, agents should familiarize themselves with their clients' existing workers' compensation policies. Comprehensive reviews will enable agents to assess risk, potential coverage gaps, and areas where a client might benefit from added protection or adjustments based on their anticipated operational changes in the new year.

Preparing for renewal

Preparation is half the battle. Agents should proactively collect essential data from clients, including:

  • Updated payroll figures.
  • Current employee counts and roles.
  • Changes in business operations, locations, or services.

This information ensures accurate policy updates and may prevent delays or discrepancies in coverage calculations.

Navigating the renewal

Accuracy is the name of the game here. Ensure all details are precise and reflect the client's current business standing. Any errors or omissions can lead to misquoted rates or potential coverage issues down the line.

Making informed decisions

The world of workers' compensation is fluid. Regulatory changes, legal amendments, and updates are commonplace. It's paramount for agents to stay informed about these changes, as they may directly impact a client's policy terms or premiums. An updated agent can guide clients to make decisions that are compliant and in their best financial interest.

Finalizing the renewal

Once the documentation is in order and decisions have been made, the final steps involve submitting payments and receiving the renewed policies. Agents should ensure clear communication lines with insurers to address last-minute queries or concerns promptly.

In case of a non-renewal

If the small business is issued a non-renewal from their current insurer, you must find them a new insurer or pursue coverage in the state fund. Sometimes, this further coverage comes at a significantly higher cost. With a partner like Bold Penguin, agents can simultaneously submit business to multiple carriers and compare prices. 

In conclusion, renewing workers' compensation policies is an annual task, but its importance cannot be overstated. Retaining clients and growing by leveraging technology like Bold Penguin is now possible. With preparation, agents can ensure their clients are adequately covered and protected for another year. Start early, stay informed, and make the renewal process a win-win for you and your clients.

Request a demo today to get ahead of renewals and set your agency up for growth in 2024. 

Contributed by Marco Vignalli, Director of Underwriting, Pie Insurance, and Karnina Szymanski, Chief Customer Officer, Bold Penguin.

Recent Articles

Ryan Schaffner, Bold Penguin’s Senior Product Manager, answers questions about our HawkSoft Agency Management System (AMS) integration.

We recently hosted a Bold Penguin "Coffee with Carlos" webinar and sat down with a member of biBERK’s auditing team to discuss a few ways agents can prepare customers for audit season. We’ve included some of their tips and videos below.

We’ve compiled a list of frequently asked questions that have bubbled up while interacting with our current and future Terminal users. Below are just a few of the questions we’ve answered, in no particular order.

Write More Commercial Insurance

Our newsletter will show you how
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Request A Demo