So you need workers' compensation insurance, but where do you go to get it and which insurance company is the best insurance company to get it from? Those are loaded questions. And as valid as they are, simple to answer they are not.
The best resource when it comes to finding an adequate insurance company is your independent insurance agent. They have all the goods when it comes to carriers and they know their appetites when it comes to risk.
What Is Workers' Compensation Insurance?
Workers' compensation insurance is an insurance policy that is taken out by an employer or subcontractor. This policy helps pay for the medical expenses of the employees or subcontractor's injuries that are incurred while working.
The majority of states mandate each employer to have a workers' compensation policy in some form or fashion. To find out your state's specifics, check with your local independent insurance agent.
What Workers' Compensation Companies Are Out There?
In a world of insurance companies on every corner, it's hard to know which one is best. The fact is, each insurance company has an appetite. Those appetites only like certain types of risk.
Some insurance companies have an appetite for high risk like writing workers' compensation insurance for loggers or gold miners, and others only want to deal with retail employees or office workers.
Knowing which company provides coverage for your industry can be daunting, and an independent insurance agent can help lead the way to a more covered you. Just in case, referencing some of the major workers' compensation players can familiarize yourself with some options out there.
Some of the best worker's compensation insurance companies on the market:
|Workers' Compensation Carrier||Appetite Guide|
|The Hartford||This carrier has proven to be one of the best overall commercial carriers for small- to medium-sized businesses. With a comprehensive coverage offering and low premiums, they are a real winner.|
|Travelers||Another great contender is Travelers with small- to medium-sized business accommodations and a more conservative appetite when it comes to risk.|
|Liberty Mutual Commercial||Different from the other Liberty Mutual, this Liberty Mutual is specifically for their commercial insurance clients and is facilitated through your independent insurance agent. It focuses on small business owners, caters to main street America, and is ideal for franchised restaurant owners.|
|Zurich North America||Great for growing businesses with national exposure focusing on the construction industry.|
|More famously known as one of Warren Buffet's companies and accommodates the small- to medium-sized business owners unlike its other known company, Berkshire Hathaway, which focuses on larger industry players. This carrier requires other lines of business in order to write workers' compensation, but they have some of the best rates around and an emphasis on restaurants.|
|EMPLOYERS||Employers focuses on businesses with fluctuating or seasonal employment needs like retail and restaurants.|
|AIG||This carrier has an emphasis on high-claim industries concerned about workers’ compensation fraud from construction to healthcare.|
|AP Intego||Great for a business owner who wants pay as you go workers' compensation insurance.|
|State Workers' Compensation Pool||Most states have what they call a workers' compensation pool. A lot of insurance companies won't take a chance on insuring you without prior proof of sustainability. New business owners or business owners who have been ousted by their current workers' compensation providers can turn to the state and expect to pay much higher premiums.|
Hotels, Construction, and Restaurants
Some of the main insurance companies focus on lodging like hotels, construction of new developments and restaurants because everybody's got to eat.
Luckily there are a few options when it comes to carriers and these industries. In fact, they rather enjoy writing workers' compensation insurance around hotels, construction, and restaurants.
Carriers that accommodate hotels, construction, and restaurants:
- Berkshire Hathaway GUARD: This carrier focuses on the hospitality industry including but not limited to providing insurance for hotels and restaurants. They are a smaller carrier owned by their larger conglomerate, Berkshire Hathaway, and are geared for small- to medium-sized businesses. They do run a tight ship and like all buildings to be up to code, with sprinkler systems installed after a certain age to avoid fire disasters. Your independent insurance agent is the best person to speak with regarding this workers' compensation carrier and any other coverages your business may need.
- Hartford: This carrier's appetite is pretty comprehensive from construction to restaurants to retail. They are one of the biggest and broadest carriers on the market, and their premiums are very competitive. Your independent insurance agent who represents them is your best resource when it comes to finding a workers' compensation carrier to suit your needs as a business owner.
- Zurich North America: This carrier is known for providing workers' compensation among other coverages for the construction industry. They have some of the best rates for your construction company. Whether you are a general contractor with a crew or working as a subcontractor, this carrier is ideal. A lot of independent insurance agents have this carrier in their roster and would be happy to go over the workers' compensation options with you.
The Skinny On Insurance Companies
A key thing to keep in mind is the best insurance company for your industry today may not be the best insurance company for your business tomorrow. Insurance companies are continually changing their risk tolerance.
Depending on how many claims they receive in one industry will determine if they continue to offer coverage in that industry. If they can't keep their reserve out of the red then they will pull that classification from their workers' compensation and other lines of coverage offerings.
In order to know which carrier likes you today, your independent insurance agent has the golden ticket. They work with these insurance companies on a daily basis and they are informed when the companies no longer accept certain industries on their books.
The Benefits Of an Independent Insurance Agent
Working with your local independent insurance agent when obtaining workers' compensation insurance and other lines of insurance for your business is the best idea yet.
They work for you, not the insurance company, and thus make it their job to find your business the best coverage and rates available. What more do you need?