When a high-risk business needs help finding coverage, they may turn to NCCI, or the National Council on Compensation Insurance, a national non-profit that oversees Workers’ Compensation insurance ratings and administers assigned risk programs. To find the best coverage for your high-risk clients, here is what you need to know about NCCI and their assigned risk programs.
What is NCCI?
As a national insurance organization, NCCI has many functions. Primarily, they analyze and predict Workers’ Compensation trends and rates, which are used by insurance carriers to price their own Workers’ Compensation coverage. NCCI also creates and oversees the Scopes Manual, which is used to identify Workers’ Compensation class codes, and publishes annual reports on regulatory and legislative trends.
Along with these functions, NCCI also administers assigned risk pools programs. Through these programs, insurance companies pool together to collectively accept assigned risk and provide coverage for high-risk businesses.
The Cons of Assigned Risk Through NCCI
For businesses in high-risk industries, a NCCI-administered assigned risk program might seem like the only option for finding coverage. However, assigned risk has many downsides.
- Assigned risk policies are typically more expensive, particularly for businesses with an experience modifier of 1.0 or higher
- Assigned risk policies offer limited and restricted coverage
- Businesses are assigned an insurer through assigned risk pools and do not get to choose their insurer
- NCCI does not administer assigned risk pools in all states
Are There Other Options?
For high-risk businesses struggling to find Workers’ Compensation coverage, a NCCI-administered assigned risk program is not the not the only option. At PEO Insurance Brokers Network, we help agents find the best coverage options for their clients, including those in high-risk industries. We provide Workers’ Compensation coverage to businesses in need, no matter the risk, and help agents find the best PEO coverage and savings for their insured.
To learn how we can help you find coverage for your high-risk clients, email quotes@peobrokersnetwork.com to receive a quote.
