Your workers comp policy renewal is the most important opportunity of the year to review your coverage, make sure you are properly classified, and potentially save money. Here is a practical checklist to run through before your policy expires.
30 to 60 Days Before Renewal
Contact your agent or start shopping at least 30 to 60 days before your renewal date. This gives enough time to get quotes from multiple carriers and make a decision without feeling rushed. Waiting until the week of renewal limits your options.
Review Your Payroll Estimates
Compare your actual payroll from the prior year to the estimate you gave at the start of the policy. If you significantly underestimated, you will owe money at audit. If you overestimated, you are due a refund. Update your estimate for the coming year to reflect your actual expected payroll.
Review Your Employee Classifications
Check that each employee is still classified under the right class code. If the nature of your business or the duties of any employee has changed, their classification may need to be updated. Correct classifications mean accurate pricing.
Pull Your Loss Run Reports
Request loss run reports for the past three to five years from your current carrier. These documents summarize your claims history and are required by any carrier quoting your policy. Having them ready makes the shopping process faster.
Consider Your Experience Modifier
Review your current experience modifier with your agent. If it has gone up due to recent claims, ask your agent to walk through what it would take to bring it back down and what impact you can expect on pricing over the next one to three years.
Shop the Market
Never renew on autopilot. Even if your current carrier offers a competitive renewal, compare it against the market. Comp Matters Inc. shops multiple carriers for East Coast businesses at every renewal. Call (631) 248-2500 to get started.
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