Chief Insurance Solutions, LLC is the #1 Brokerage and Consulting Firm in the U.S. with a specialization in Workers Compensation Insurance for employers of all kinds and sizes. We are not your “run-of-the-mill” insurance brokerage. We are committed to building a valuable and personable partnership with each one of our clients.
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People often think that the cost of insurance is not very different from one insurance company to another. This misconception enables business owners to overpay for workers compensation insurance without realizing it. In reality, different insurance companies can offer dramatically different rates from one another. For example, class code 8827 for Homemaker Services can be quoted at a rate of 7.5 ($7.5 per $100 of payroll) by one insurance company and 17.5 by another. That is a 57% difference for just one class code! As demonstrated in this example, shopping for quotes can save businesses thousands of dollars.
Feeding the right insurance company
Each insurance company has an appetite or guideline that it follows when bringing in new clients. For example, some insurance companies only like insuring small businesses. Others have restrictions based on operations or dangerous risks. Some insurance companies even prefer working with businesses that have a lot of claims. Insurance companies compare their appetite with your operations, payroll amounts, claims history, and more. Then they generate a quote that reflects how well your business matches those guidelines. The more hungry an insurance company is for your business, the better and cheaper your quotes should be. They can also decline offering coverage if your business is outside of their guidelines. Brokers who understand how insurance company appetites affect prices can help connect you with a compatible insurance company.
Longevity is not a valued trait
People often have a sense of comfort in the loyalty they have with a particular insurance company. While that loyalty is admirable, it is not the best way to secure the lowest workers compensation prices. The cost of premium is not affected by the longevity of your coverage with an insurance company. While it may seem easier to renew with the same company, doing so may limit your opportunities to save money on your premium. By shopping for quotes, you can verify whether is it a good idea to stay with your insurance company or make a switch.
As your business changes, so can your premium
Many changes to you business affect the compatibility and cost of your workers compensation insurance. There may be a significant increase or decrease in payroll or change in the flow of payroll. There may be a severe workers compensation claim or frequent claims. There may even be out of state expansions or a change in operations. All those changes open the door to potential savings with a more compatible insurance company.
Rates are always adjusting
Every year adjustments are made to the premium rates for workers compensation insurance. While sometimes these adjustments are only pennies in difference, they can also be surprisingly steep. When rates adjust, whether higher or lower, insurance companies will also adjust their rates. As a result, an insurance company that quoted the lowest rates for you last year may become much more expensive this year. Likewise, an insurance company that quoted the highest rates for you last year may become much less expensive this year. Shopping can help follow the trends and changes in the workers compensation insurance market.
There is more to it than price
Workers compensation insurance companies and brokerages have more differences than just rates. Insurance companies can offer different payment plans from one anther. For example, businesses with seasonal workers or inconsistent payroll can benefit with payroll reporting plans. Payroll reporting is where you only pay workers compensation insurance to reflect real payroll. Insurance companies can also differ in the amount of deposit they need to set up your policy. If you are hoping to pay less upfront, an insurance company asking for a lower deposit can be a desirable choice. Also, insurance companies have different levels of customer service. For example, internet-savvy businesses may prefer using an online policy holder portal over mailing payments. These advantages and differences make dealing with insurance much less of a hassle. Shopping for quotes helps you learn more about the variations you have to choose from.
There is no obligation to switch
No matter how you choose which quote to move forward with, at the end of the day it is still your choice. Shopping for quotes is an important way to verify that you are not overpaying for your insurance. Once you review your options, you have no obligation to switch insurance companies. This factor makes shopping for quotes harmless, yet very advantageous.
It may seem like a hassle at first, but shopping for insurance quotes can be a painless process. It is especially painless if you work with a brokerage that understands your operations, specializes in workers compensation insurance, and shops with multiple insurance companies each year to secure the lowest possible quotes for you. While sometimes shopping just reaffirms that your current insurance company is the best, other times it can reveal thousands of dollars in savings. Either way, it is a smart and beneficial practice for every business owner.
CHIEF Pillars of Excellence
Chief Insurance Solutions LLC was founded to reduce the cost and hassle of workers' compensation insurance for employers of all kinds and sizes. With our in-depth knowledge and vast experience, we make securing the best workers’ compensation insurance coverage solutions on the market as affordable and hassle-free as possible. Our clients rely on the C.H.I.E.F. Pillars of Excellence as a resource for our ideals.