Workers compensation insurance seems to have the stigma of a double-edged sword.
With both favorable and unfavorable consequences, both employers and employees need workers comp as a benefit and protection.
To help you share the pros instead of the cons, let’s demystify some of the common myths surrounding workers comp insurance and why your employer clients need it now more than ever.
Common Workers Compensation Insurance Myths
ONE: Small businesses with a small staff don’t need workers comp. False. No matter what size business, workers comp is one of the primary ways to protect your business. The majority of businesses are required by law to have workers comp insurance. If an employee gets injured on the job and sues, the business owner could lose everything through a lawsuit. Workers comp is designed to protect businesses of all sizes.
TWO: It is cheaper to pay for injuries out of pocket than to pay for workers comp insurance. Untrue. Medical expenses are just the beginning of an employer’s obligations when an employee gets injured. Businesses need to plan on covering lost wages, additional damages, and even the cost of temporary staffing coverage.
THREE: Our employees would never sue us. False. We live in a me-focused society. Employers cannot count on loyalty in relationships when someone else is injured working on the job. A work-related injury can incur enormous professional and personal expenses that might force your most trusted employee to file a lawsuit. Getting workers comp ensures you don’t have to test the strength of relationships.
FOUR: Workers compensation claims improve over time. Untrue. Injuries that require medical treatment typically increase medical costs over time. The best time to settle workers comp claims with employees is immediately after the incident. Doing so can help employers save significantly.
FIVE: Your employees offer professional services, so they don’t need workers comp. False. A simple slip on the floor or in the parking lot makes the business owner liable. Accidents can happen anywhere at any time to anyone. If it happens when team members are working on the job – no matter what they are going – the company is responsible.
SIX: Employers don’t have to do anything more than pay a workers comp claim. Untrue. The responsibility of the employer isn’t done until the employee is back at work productively. Once a claim is filed an employer should implement their return-to-work program that ensures consistent communication, return-to-work guidelines, and monitors productivity. This means an employer should create a return-to-work policy, which insurance brokers and agents can help define before an accident happens.
What Insurance Agents & Brokers Should Do
Share these myths with your employer clients and help them understand that they need workers comp insurance for the well being of their company and employees.
Remind your clients that any company that hires employees needs workers comp to provide coverage for the unexpected.
Remember that the more you invest time in educating prospective clients about the benefits for workers comp insurance, the more inclined they will be to do business with you when they need the services and products you offer.
Do you have hard-to-place clients and high X-mod account? Syndicated Insurance Resources can help you. In fact, we are well known for finding solutions for almost everyone. Email us or submit to us through our free broker gateway today.
When you engage prospective employer clients in conversations about their workers comp and business insurance needs, are you positioning yourself as an expert or advisor?
Elevating yourself as an advisor — instead of a broker or agent — is certain to keep conversations going while giving you the opportunity to showcase your expertise.
You can effectively and creatively use conversation as a tool to help you uncover how business owners want to manage their business and employees.
Inside of talking about your insurance business offerings, ask them questions that delve into things like how they want to treat their employees or accomplish their business goals.
Whenever you take the focus off of you and intentionally ask questions that uncover your prospects problems, pain points, or aspirations, you stand out immediately as someone who cares and understands. You are also setting yourself from other wannabe insurance solution provider competitors.
Successfully selling workers comp insurance means finding ways to align what you offer with your client’s needs.
As the opportunity presents itself, you want to share basic information that explains what workers comp insurance is and why they need it. But you don’t want to sound like every other sales person out there.
Make sure you’re subtle and strategic in your approach, so you can position yourself as a relationship builder and insurance expert — not a salesperson.
Before you interact with your next prospect, consider doing these few things first:
- Assess your prospects’ business.
- Determine what type of services or products they offer.
- Try to uncover which workers comp laws may apply.
- Evaluate their demographics.
- Find ways to creatively pre-assess the potential client’s risk.
- Arm yourself with key pieces of information about workers comp that can help them.
Sell Workers Comp to Small Businesses
Targeting small businesses makes sense because workers comp insurance is a relationship-driven business.
It is easy to build relationships with small business owners, and you have easy access to them as today’s entrepreneurial market continues to grow rapidly. But you can’t sell to them as you might larger, well-established companies.
Today’s small business owners need to understand how to protect themselves and their assets.
Create a cheat sheet that lists out key workers comp points you can share with small business owners, so you’re prepared when the opportunity presents itself.
Position yourself as a helpful thought-leader and service provider by finding ways to integrate into your conversations how insurance can safeguard their company.
Consider leveraging partnerships that offer a subscription-based solution that scales with your client’s business to provide staffing, payroll, workers comp certificates of insurance and even HR consulting services on demand and as needed.
Other essential workers comp tips to consider include:
- Look for ways to save clients’ money
- Advise on workers comp rules and laws
- Provide affordable quotes and options that offer value
- Present valuable tips and insights when policies change
- Issue certificates of insurance promptly
- Assist with claims and renewals
Competition is fierce, but if you’re armed with the right tools and tips, you can stand out from the rest.
The good news is you don’t have to go it alone.
You can partner with us and access a wide array of tools that can provide value to your clients.
In turn, you can earn higher commissions and have happier clients who have saved money.
Sign up or sign in to your free broker gateway today.
With new restaurants opening around the nation, insurance agents and brokers have continual opportunities to sell workers compensation insurance to restaurant owners.
According to the National Restaurant Association (NRA), restaurant industry revenue exceeded $799 Billion by the end of last year.
A quick look at statistics by the NRA paints a picture of favorable conditions for a targeted class that insurance agents should focus on serving. For instance, did you know that U.S. restaurants:
- Represent 10 percent of the overall workforce
- Employee 14.7 million restaurant workers
- Report one million locations
The potential for minor and major accidents to occur at restaurants is consistent. In fact, Marsh’s 2017 Restaurant Loss Cost Trends Report shows that 24% of all restaurant workers’ compensation claims were from cuts, punctures, and scrapes.
Anything from grease burns to knife cuts to falling on a coke spill can happen in the blink of an eye. Each incident can leave a restaurant short-staffed while injured employees see medical treatment. Every situation costs time and money that restaurant owners typically cannot afford to add to their bottom line.
Fortunately, as insurance brokers and agents you can help restaurant owners protect their business and employees with workers compensation insurance that covers everything from medical expenses to potential legalities.
Since a restaurant owner has to juggle a laundry list of responsibilities, they may not be aware of the options available to them.
Educate Restaurant Owners
If you proactively reach out and educate restaurant owners about how insurance can cover potential risks and limit their exposures, you are sure to build long-term relationships that look to you for your insurance expertise.
No matter what state a restaurant resides in, this type of insurance is critical. However, you should remind them that policies can vary based on state laws.
One of the first ways you can educate restaurant owners is by showing the benefits of workers compensation coverage, and how it can give them peace of mind.
At a high-level, you can share with restaurant owners the following overview that shows what workers compensation insurance covers.
- Medical expenses from injuries that occur while on the job.
- Wages missed if an employee is injured on the job and needs time to recover. (Typically, this covers a portion of their full wages.)
- Illness caused by job-related issues, such as exposure to dangerous chemicals, etc.
- Legal fees for defending the business should an employee sue for work-related injuries.
Examples of common restaurant work-related injuries include:
- Burns from hot surfaces, materials, and liquids
- Cuts from improper knife use or storage
- Falls from spills and wet floors
- Sprains and strains from lifting heavy trays
- Robbery during a catering job
- Accidents traveling to and from locations for catering jobs
- Hand injuries from repetitive tasks
- Machine-related injuries from equipment malfunction or improper use
The more you provide your prospective and current restaurant owner clients with educational insights about insurance, the more you’ll build your brand as a helpful resource they can count on. Consider sharing tips for restaurant owners tips about:
- Lowering the cost of individual claims,
- Training employees to recognize potential accidents before they happen,
- Getting employees back to work faster,
- Accident reporting procedures,
- Offering return-to-work programs that give employees modified duties during recovery.
Download your free one-page overview—“Why Restaurants Need Workers’ Comp— that you can share with restaurant clients today!
Interested in learning how Syndicated can help you access Workers Comp options for all restaurant classes? View our page for a taste of what we cover.
Filing an insurance claim is inevitable. The ability to do so is why people purchased the insurance policy from you in the first place.
The question is, do your customers know how to file a claim? When the time comes are they going to scramble to uncover what to do? Or can you make it easier by providing step-by-step tips that educate them on the process in advance?
The section between the lines provides a quick and easy guide you can post on your website or in your email communications with your employer clients.
Employer Tips for Managing Workers’ Comp Claims
As a business owner, you hope you never have to rely on your workers’ comp insurance policy. But similar to a fire drill, it is important to understand what you’ll need to do when the time comes to file a workers’ comp claim.
Knowing your employer responsibilities in advance can save you time while helping to reduce liability, potential lawsuits, and potential employee repercussions.
Take time to these fundamental steps now. When the time comes to file a claim, you can easily navigate the process. You’ll also keep your business financially stable while ensuring your employee can easily recover.
Report Claims Immediately. Thoroughly fill out a “First Report of Injury” form. Failing to report your claim promptly and accurately could result in fines and penalties. Studies have shown that the longer a company waits to report an injury, the higher the damage costs. You can keep costs down by acting as soon as you learn an employee is in need of workers’ compensation benefits.
Document the Details. Create a paper trail that documents the details about the employee’s situation. Capture the who, what, when, where, why and how information. Interview the employee and any witnesses as soon as possible. It is important to capture details while it is fresh on the minds of those involved. Get signed statements. Take photos, as appropriate.
Contact Your Claims Representative. Be prepared to share the details and documentation surrounding your employee’s injury or illness. Have your employee’s contact info, wage history and claim history on hand. After you’ve provided the details, your claims representative will submit the required paperwork you shared.
Share Your Return to Work Plan. To prevent claims from escalating, share your company’s return to work plan with the employee and your claims representative. If possible, be prepared to facilitate modified work restrictions. If your employee’s responsibilities cannot accommodate modified duty, make sure all parties involved know this up front. Sharing this details from the beginning creates a clear game plan while setting expectations regarding productivity impact and overall team morale.
Keep in Touch. Out of sight, does not equal out of mind. It is critical that you consistently communicate with your employee about their status and progress. Studies have found that injured workers who feel their informational needs met also return to work faster. Let your employee know you are concerned about their recovery.
By making yourself familiar with these five steps, you can easily navigate the workers’ comp process when the time comes.
Remember, while selling insurance policies keeps your independent insurance business going, it is only one facet of your job. To ensure repeat customers, you need to find ways to strengthen your employer client relationships. The more you can share helpful insights like this with your existing client base — the easier it is for customers to stick with you.
Talking to your employer clients about workers’ comp insurance can seem pretty cut and dry. It is a fact that all small business owners need workers’ comp. Yet, there is so much more to it than your small business owner clients probably know.
Consumers and agents alike realize the basics about workers’ comp are pretty easy to understand. The bottom line is that every employer is responsible for providing a safe work environment, and liable for any occupational injuries.
Workers’ Comp Insurance policies can offer coverage for medical expenses, replacement wages, disability benefits, and even death benefits.
But as an independent insurance agent, you know there is much more information your employer clients need to know.
When you take the time share insights beyond basic understanding, you are providing a valuable service while connecting with your customers. Educating employer clients helps you stand out and gives you a leg up on your competition.
To help you quickly showcase your expertise, we’ve collected a list of Workers’ Comp Facts you can share with prospects. You can read the tips here. But you can also download this sheet to print or email it to your clients. You can even place it on your website.
Share these workers’ comp educational tips with prospective clients whenever you’re going to discuss their workers’ comp needs. Let clients know that your knowledge and expertise is part of the additional value they get when they use your independent insurance agency.
Essential Workers’ Comp Insights Business Owners Need to Know
Here’s a list of facts every business owner and employer should keep in mind as you evaluate workers’ compensation policy options.
Workers’ compensation claims are expensive. The average claim for lost time is $29K. The average indemnity claim is $24K. Collectively you could pay approximately $53K without workers’ comp insurance policies in place. (Source: National Council on Compensation Insurance.)
Workers’ Comp premiums are affected by workplace safety. The premium calculation is dependent upon your “experience modifier” that compares losses you’ve already experienced to anticipated losses for all members of your industry. The fewer your claims, the lower your premiums.
Decreasing claims can lower your premium. Make workplace safety a priority by training employees how to use safety equipment and do their jobs without incidents. Make the training mandatory and document who attends each session.
Correct worker classification may cut workers’ comp costs. Workers classification codes have different prices attached to them, and indication occupational risks. The riskier the job, the more it costs for insurance. Taking the time to classify your team members properly can ensure you’re paying the right amount for each employee.
A return-to-work program can reduce future premiums. By reducing the number of workdays lost to injuries or illness, you can decrease lost wages. In turn, you can reduce future increases in workers’ comp insurance. It is a domino effect that you can control with a simple program that helps you document loss management.
Workers’ comp laws vary by state. Most states require an employer to carry a workers’ comp policy with only one part-time employee. Other states require employers to have a certain number of employees before workers’ comp insurance is mandated.
Employees can collect workers’ comp benefits whenever they perform their job. It doesn’t matter where the incident occurs as long as an employee is performing their job. If your employee travels for work, attends a company-sponsored event, or runs a job-related errand, they can collect workers’ comp.
Pre-existing conditions worsened by work are covered. Any pre-existing condition that aggravates or makes a condition worse can file for workers’ compensation coverage.
Don’t assume the risk of workplace illnesses or injuries yourself. Protect your business by getting a simple, cost-effective workers’ compensation policy in place today.
Add it to your arsenal of value-added information you provide your employer clients.
You make money when you can promptly provide competitive quotes selling workers’ comp to individuals or businesses. Since most work injury claims cost an average of $37,000, selling these policies should provide you with a constant revenue stream.
Think about it. Every business with employees needs workers’ comp protection, especially if they have occupational hazards or illnesses associated with their industry. Many states also make it mandatory, and some vendors are required to provide proof of coverage to bid on jobs.
So, selling workers’ comp sounds like a no-brainer for any insurance broker or agent to easily accomplish. Or is it?
Competition is fierce. You’re not the only insurance broker or agent selling workers’ comp that is looking to gain new clients and close deals.
Let’s face it, today’s world is a first-come, first-served marketplace. You may do all the work and lose the deal because you didn’t respond fast enough. How can you compete and win?
Here are six steps to successfully sell workers’ comp in any state.
1) Know workers’ comp requirements.
Before you start selling, get licensed for every state you’ll be selling workers’ comp in, and ensure you’re compliant with the mandated guidelines for each state. Stay on top of the mandates, as regulations can shift over time.
2) Educate yourself.
Understand class codes, laws and underwriting so you can anticipate answers to questions before they are asked. You should also learn key workplace injury statistics and claim facts – from productivity losses to recovery time to claim costs. Weave these points into your client conversations about their workers’ comp needs.
3) Sell your expertise.
Your knowledge is a commodity that can set you apart from competitors. It also positions you to give clients advice on rule, laws, and ways to save money. Go into client conversations armed with thought-provoking questions to ask your customer about their workplace potential risks. Help them focus on the reasons they need a workers’ comp policy.
4) Create a marketing plan.
Cold calling is hard. Create a marketing plan designed to help you target to the types of clients you want to reach. Marketing is a full-time job. Consider hiring a marketing consultant to set you up for success. (Ask our marketing consultant, Joy, to point you in the right direction.)
5) Develop a workflow.
Follow a three-step process that you walk through with every prospective client that Educates, Shops, Advises. Start by educating and informing business owners about workers’ comp rules. Let them know you’ll do the shopping so they can compare prices and quotes. Advise and help them with workers’ comp claims and coverages after the sale.
6) Work smartly.
Stop chasing rates and policy options as it can quickly eat up your time and diminish your productivity. Use smart tools that increase your market access and quickly gets you quotes, even for your hard-to-place clients. Don’t just sign up for these tools; actively use them. If you don’t know how to use them, ask the provider to guide you through the process.
These six steps seem easy enough to follow. But the devil is in the details, especially when it comes to quickly getting workers’ comp quotes. Remember, you’re competing with other insurance brokers or agents who may submit quote options to your prospective clients first.
Since quick response is the key to your success, you need to tap into smart options that help you quickly deliver.
Stop wasting your time navigating multiple carrier systems, dialing for quotes, and waiting for returned phone calls. Access exponential options and get quick quotes today using your free Syndicated Insurance Resources Dashboard. Save time and money by using our one-to-many approach. Upload one ACORD and receive instant indications.
Already have an account? Log in now. Need one? Sign up here. Either way, get started quickly finding quotes today. (Note: First-time users need to set up their Appulate Link.) Want someone to walk you through the process? Call or email us at 877.333.8195.
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