The Ultimate Guide to Choosing Workers' Comp Carriers

September 6, 2022

By: 

The Normandy Team
The Ultimate Guide to Choosing Workers' Comp Carriers

Did you know that the median annual wage for insurance sales agents last year was $49,840? The amount you can make as an insurance agent depends on the carrier you choose to sell for.

If you are on the prow for a new job opportunity in the field of insurance, this is the guide for you.

So, how do you find the best workers' comp carriers? Keep reading to find out.

Know the State Requirements

To find success as an insurance agent, you need to know the state requirements for workers' compensation insurance. This insurance plan is regulated at the state level so understanding these regulations should be the first priority.

The state will dictate which employees at a business need to be covered.

If you work or perform work in multiple states, you have to comply with each state's laws. The policy will only provide coverage within state lines.

Knowing the state requirements will help you find the right workers' comp carriers and maintain compliance with your clients.

Consider Customer Service

You'll want to work with carriers that have great customer service. This can be helpful to you and your clients.

The provider should be easy to access when there are concerns or questions regarding premium payments, claims processing, workplace safety, etc.

A provider that offers digital services is more beneficial for agents and clients. Look for providers with customer service portals and online tools that allow the completion of the following tasks:

  • Paying bills
  • Reporting injuries
  • Managing claims
  • Viewing reports

Providers that have accessible experts are also helpful. The carrier should have a customer service line that can be dialed at any time to answer important questions.

A carrier with great customer service typically has departments for claims, underwriting, premium consultations, and safety.

Learn Their Expertise

A workers' comp agent can only be an expert on an insurance policy if the carriers are also experts. Insurance companies need to know everything about their offerings so they can pass the knowledge on to the agent who passes it on to the customers.

If the carrier provides other types of insurance policies, you need to be aware of those as well. This way, you can recommend that businesses pack their workers' comp insurance with other insurance coverage options.

If you want clients to get the most value from their premium, choose a carrier that specializes in workers' compensation insurance.

Specialized insurance providers will save clients money in the future and they have a deep understanding of the workers' comp laws in that region. This equips agents and clients to avoid lawsuits.

Check for a Safety Rewards Program

Agents can sell more insurance policies when there are rewards in place for clients. Check if a workers' comp carrier offers a safety rewards program for this reason.

Some carriers will reward their policyholders with money back when they prove that safety is their top priority. Some states have safety grant programs that help clients as well.

Companies that put safety first might earn a significant amount of the premium back which means more chances to gain customers as an agent.

Ask About the Policy Options

If you are a captive agent who only sells the policies of one company, you'll want to choose a carrier that offers multiple policy options.

Although this guide covers workers' comp insurance, this step in your search is important. Since a lot of insurance carriers have more than one type of insurance plan, it's important to consider.

To help clients find coverage needs that are the right fit for them, you'll likely need to work with a carrier that offers more than workers' comp. At the very least, the carrier should provide various workers' comp coverage options.

Compare Pricing

Before deciding to work with a workers' comp carrier, it's important to compare prices from various companies. By verifying the rates of multiple carriers, you can identify whether or not a carrier is overcharging.

If there is an outlier among the rest, consider it a red flag. Clients can do the same research as you and if they find that the carrier you sell for is charging a lot more than most carriers, they are likely to move on.

To better your chances of making sales, choose a carrier that offers realistic pricing. If you aren't bound to one carrier, it's beneficial to know the different prices from various companies to secure rates within your clients' budgets.

Know the Insurance Carrier's Location

Clients often prefer to work with an insurance carrier that is in their local area. Because of this, you should also shop locally and know the insurance carrier's location.

As stated before, local insurance carriers are more knowledgeable about the local and state insurance coverage laws. This can help you, as an agent, understand the complexities of the local market and share the information with clients.

Agents can use local insight to recommend coverage options that are suited for businesses with specific challenges.

For example, in most states businesses are required to hold workers' comp insurance if they have one or more employees. However, this is not the same regulation for all 50 states.

If you want to expand your pool of possible clients to more than one state, search for an insurance carrier that works in various areas.

Ask About Lead Generation

Workers' comp agents might have to generate their own leads depending on the carrier that they choose. If lead generation is something you don't want to mess with, choose an insurance carrier that will complete this task for you.

Still, you shouldn't leave everything to them. To make the most money from commission, you'll want to network and ask for referrals to find your own leads. These leads are more likely to close than those from the carrier.

If the carrier doesn't provide any leads for you, you might have to use your personal funds to market the insurance coverage. Marketing can get expensive so keep this in mind when choosing a carrier.

Note if They Prefer Captive Agents

If you are looking for workers' comp carriers to sell for, you need to understand the differences between being a captive and an independent agent.

A captive agent works for one company and sells only that company's policies. Some carriers might prefer that agents work for their company only. This is something you'll want to note during your search.

An independent agent represents many insurance carriers because they work for themselves. These agents have to find their own leads while a captive agent has leads provided to them.

Captive agents might receive a salary plus commissions or bonuses. Independent agents receive only commissions but get a commission from every carrier they sell for.

Although it might sound more beneficial to be an independent agent because you can provide clients with more coverage options, there are pros and cons to both.

For instance, captive agents can focus their knowledge on one company's offerings and offer exceptional service levels. Meanwhile, an independent agent might have better luck matching a client with their perfect insurance plan.

Consider Quoting Options

When you find clients that are ready to fill out an application, how long does the process take? Typically, it begins with a quote before a client gives a final decision.

You'll want to work with a carrier that offers same-day quoting to expedite the process. Applications submitted before 2 pm through Normandy Insurance Company are quoted that same day 99% of the time.

This betters your chances of making a sale before a client changes their mind or finds insurance elsewhere because the process took too long. Quick quoting leads to more sales and more money in your pocket!

Find Out Their Preferred Industries

Some workers' comp insurance carriers offer coverage plans for certain industries. This can minimize or maximize your customer search pool.

Before working full-time with an insurance carrier, you'll need to know their preferred industries. For example, these are some of the industries preferred by Normandy Insurance Company:

  • Hotel and Motel
  • Light Manufacturing
  • Retail and Wholesale
  • Restaurants
  • Cannabis
  • Flooring
  • Landscape and Lawn Service

Normandy Insurance Company is not limited to the above industries. This list is just to give you a good idea of the variety of options for agents to work with. This is something to look for when choosing an insurance carrier.

Choosing the Right Workers' Comp Carriers

Insurance agents have the difficult task of choosing the best workers' comp carriers to work with. The choice you make might affect your client pool, sales, and more.

Start by learning the requirements in your state or various states you wish to sell in. Choose a carrier with great customer service, expertise, safety rewards programs, and reasonable pricing.

Focus on what your role would be with the carrier and if they can take care of clients to help you make sales. Normandy Insurance Company is a great choice for agents. Become an agent with us now to start selling.

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