How to Become an Agent With Workers' Comp Insurance Companies

October 13, 2022


The Normandy Team
How to Become an Agent With Workers' Comp Insurance Companies

Did you know that workers' comp is required for small businesses in 49 of the 50 states? This means that if you become an agent with workers' comp insurance companies, you have unlimited potential business.

Since workers' comp is something businesses have to get there are many workers' comp carriers out there. If you are thinking of being an agent, you want to make sure you pick the right one.

Keep reading to find out more about workers' comp and what makes it something businesses have to have. You can also get some tips on finding the right carrier to work for.

What have you got to lose? Let's go!

Workers' Comp Overview

Prussian Chancellor Otto von Bismark began the modern workers' comp world by passing the Sickness and Accident Laws. These laws focus on caring for the employee and all of Europe soon followed.

Individual states within the United States started enacting laws from 1911 to 1948. Now all fifty states have workers' comp laws and many states require businesses to have workers' comp coverage.

Workers' Comp Insurance vs. General Liability Insurance

Many people wonder, "How does workers' comp work?" They often confuse it with the general liability insurance that businesses have. General liability focuses on third parties injuries at a business and includes things like:

  • Bodily injuries because of a business' operations or employees
  • Property damage by an employee
  • Personal and advertising injuries like slander, libel, or copyright issues
  • Medical expenses of people hurt at the business or by its operation

Some coverages are broken up into an A, B, or C division that companies choose from. This gives them the option to pick their coverage just like an individual picks their own coverage.

Workers' comp insurance is offered by workers' comp carriers and the coverages have a different focus. This focus is more on the employees and specific business insurance needs.

  • Employees who are injured accidentally while working
  • Errors and omissions coverage for professionals such as doctors, lawyers, and investment advisors among others
  • Product liability protects companies who make products in case someone sues them claiming the product injured them
  • Alcohol coverage is offered for businesses that sell alcohol in case a customer gets intoxicated and hurts themselves

Your State Requirements

The first step in becoming an agent who can offer workers comp insurance is to check your state's requirements. Each state licenses its insurance agents and has different requirements for testing and certification.

Your license is necessary if you want to be an agent who offers insurance. It is illegal to offer insurance as an agent and not have your license. When you apply to work for a carrier, they will ask you for proof of license.

You can speak to a company before getting your license to find out about the job. This can help you decide if you want to get a license or not.

Reviewing Workers' Comp Insurance Companies

Just like every person is unique, every insurance carrier is different. If you are thinking about becoming an agent, take the time to look over and get to know an insurance company.

Big Carriers

There are plenty of big insurance companies that offer workers' comp. You can find reviews of what it is like to work for them pretty easily. Some companies will even have whole sections of their website dedicated to recruiting.

This makes reviewing a bigger company easier for you. However, you still want to take the time to read through reviews and try to get a feel for a company. Bigger does not always mean better.

Small Carriers

Smaller insurance companies are out there and you don't want to discount them just because they don't have name recognition. A smaller company may not have the red tape that a bigger company has to deal with.

Sometimes they also offer better compensation packages because of their smaller size. The reason is they don't have the overhead of larger companies. Study up on the smaller companies because they may fit you best.

Qualities to Look for in Workers' Comp Insurance Companies

It is exciting to look at the new possibilities that can come from being a workers' comp agent. However, you want to make sure to find a carrier you can work for who has the support you will need.

Fast Service

When looking at a carrier, keep in mind that you can only work as fast as they do. The longer it takes to get applications approved, the longer it will take to get your commissions.

Plus, customers may not wait around if applications take an extended period of time. You want to make sure that your carrier gives you fast service. Companies should offer you same-day or next-day quotes.

Open Considerations

There are over 30 million small businesses in the United States. Many of these businesses have to carry workers' comp insurance. You want the freedom to reach as many businesses as possible.

Make sure that your carrier is open to all types of coverages. You don't want to work for a carrier that only covers restaurants. This cuts out many possible clients.

Look for carriers who offer coverage to many types of businesses. You can also find out how open they are to new types of coverage for a business they haven't covered before.

Real-World Help

Chats and FAQ pages are very helpful but sometimes you need to speak to a person. You want a carrier who gives you personal support when you need it. Ask them how hard it is to speak to your underwriter in person.

You also want to see how much personal support they offer. Do they have other leaders you can speak to in person? You may have questions that their FAQ page doesn't cover and need help.

This is where a smaller carrier could have an advantage over a larger company. You want to make sure that you have the support you need to be successful as a new agent.

Strong Online Support

We live in a digital world and business owners don't have a lot of time for paperwork. Find out if the carrier you are looking at has a strong online presence. Do they have an app that allows you to give quotes instantly?

If your customer likes the quote can you sign them up on the app? Having a great app can save you time and help you close sales faster.

Take some time to check into their online options for you to manage your account as an agent. Is it a user-friendly portal? Can you do your paperwork online without having to fill out actual forms?

All of these questions will help you save time and give you more options to reach out to potential clients.

Marketing Help

As you are meeting with potential clients, you want to give them information about what you offer. You want to see what marketing materials the company has that you can use.

They should have information about the different plans and what features they offer. You should also see materials listing the benefits that you can show your potential clients.

These materials should be focused on different industries so you don't have to do a lot of work. They should also have a place where you can add your contact information so your client connects with you.

Connect and Review

Looking at companies means checking out their website information but it also means checking them in other sources. There are rating agencies out there like Trustpilot who can tell you a lot about a potential carrier.

Do your homework on the company and don't be afraid to set up times to talk to people within the company. They may want to interview you, but you can also interview them.

Have questions ready based on your research and ask them during your meeting with them. Show them that you have done your research and have good questions to ask.

This will help you find the answers you seek and it will show them that you are serious about your job.

Start Your New Career

You can start a new career with new possibilities if you connect with one of the right workers' comp insurance companies. Take some time to do your research and preparation and you will find the best company for you.

Normandy Insurance Company offers workers' comp and general liability insurance for small to medium-sized businesses. Our personal touch and top-quality support can help you get to the next level as an agent.

We would love to connect with you and discuss your options as a workers' comp agent today. Reach out and let us show you the Normandy difference!

Learn about becoming an agent: Becoming An Agent | Email Us: | Call Us: 1-866-688-6442

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