Assigned Risk Workers’ Compensation Insurance Alternatives

Are you an insurance agent seeking alternatives to traditional assigned risk workers’ compensation insurance for your business clients? We understand that assigned risk plans can be expensive and offer limited coverage, which is why we offer a range of alternative solutions to protect your clients’ businesses and employees.

But why might workers’ comp coverage be hard to obtain in the first place? There are a few reasons why traditional carriers may be hesitant to provide coverage:

High Risk Industries

Some industries, such as construction and manufacturing, tend to have a higher number of workplace injuries. As a result, carriers may be more hesitant to provide coverage or may charge higher premiums.

Pre-Existing Injuries

If an employee has a pre-existing injury, they may be more likely to file a workers’ compensation claim. This can make it more difficult for businesses to secure coverage or lead to higher premiums.

Poor Loss History

If a business has a history of frequent workers’ compensation claims, carriers may view it as a high-risk and charge higher premiums or deny coverage altogether.

Alternative Options

If you’re having trouble obtaining workers’ compensation coverage for your clients, there are alternative options to consider. Our team of expert brokers has extensive experience in the industry and can assist you in finding a solution that fits your client’s needs.

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Pros and Cons of Assigned Risk Workers Comp Insurance Plans

If you’re considering an assigned risk plan for your clients, it’s important to weigh the pros and cons carefully. Contact us today to schedule a consultation.

Pros:

  • Guaranteed coverage: Assigned risk plans are required to accept any business that applies for coverage, regardless of the industry or loss history. This means that even if you have trouble securing coverage elsewhere, you’ll be able to obtain workers’ compensation insurance through an assigned risk plan.

  • State-mandated coverage: In most states, businesses are required to have workers’ compensation insurance. Assigned risk plans can help you meet this requirement if you’re unable to secure coverage through traditional carriers.

Cons:

  • High premiums: Because assigned risk plans accept businesses that may be viewed as high risk, premiums tend to be higher compared to traditional carriers.

  • Limited coverage: Assigned risk plans may have lower coverage limits and fewer options for customization compared to traditional carriers. This can leave your clients’ businesses vulnerable in the event of a large or costly claim.

  • Limited carriers: Assigned risk plans may only be offered by a few carriers, which can limit your options and make it harder to find the best fit for your clients.

  • Annual audits: With an assigned risk plan, you’re required to complete a year-end audit — our products are all pay-as-you-go with no audits.

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Get Your Insured Top of the Line Workers’ Comp Coverage

Don’t let the occupational hazards associated with your industry stop you from insuring your client. Fill out the form below to explore how we can champion the best workers’ comp coverage together.