Many business owners stay with the same workers comp carrier year after year out of habit or inertia. That loyalty rarely gets rewarded. Switching carriers at renewal is often the fastest way to reduce your premium significantly. Here is how to do it the right way.
When Can You Switch Carriers?
You can switch workers comp carriers at any policy renewal date. Most policies renew annually. You can also cancel a policy mid-term, but doing so may result in a short-rate penalty where you receive less than a pro-rated refund for the unused portion of the policy. Switching at renewal avoids any penalty.
Does Switching Affect Your Experience Modifier?
No. Your experience modifier is based on your claims history and follows your business regardless of which carrier holds your policy. Switching carriers does not reset or change your EMR.
What to Do Before You Switch
Before switching, make sure your current policy is up to date and that any open claims are properly documented. Request your loss run reports for the past three to five years. These are required by most carriers when they quote a new policy and having them ready speeds up the process.
How to Compare Quotes the Right Way
Make sure any quotes you receive are based on the same class codes and payroll figures. Apples-to-apples comparison requires consistent inputs. An independent agent who shops multiple carriers simultaneously handles this for you and presents comparable options side by side.
Ready to Compare?
Comp Matters Inc. shops workers comp quotes from multiple carriers for East Coast businesses every day. Call (631) 248-2500 for a free comparison at your next renewal.
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