High Emod Contractor Work Comp

Mar 14, 2017

  1. AZDave
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    AZDave Guru

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    Any suggestions for high emod work comp for a steel contractor? 1.59 and I'm trying to get them out of the pool. Long shot, I know, but there is a lot of meat on the bones.

    Thanks,
    Dave
     
    AZDave, Mar 14, 2017
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  2. MrGolf
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    MrGolf Super Genius

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    Amerisafe? They'll take on some high e-mods usually.
     
    MrGolf, Mar 14, 2017
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  3. AZDave
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    Thank you MrGolf. I'll give them a call. They look like a fit, but appear they may not like AZ as the base state.
     
    AZDave, Mar 14, 2017
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  4. InsCommentary
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    Why is the mod so high? I looked at a mod worksheet and loss runs for an agent recently and, of the 5 open claims driving the mod, 3 of them could have been closed over a year ago. One was an $80,000 open reserve on a worker who had hernia surgery and has been back to work almost 2 years. The carrier just failed to close the reserve and nobody was monitoring this for the stat card cut-off date.
     
  5. AZDave
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    Four full years in business, with early years showing low premiums and one large open loss that could not get closed due to ongoing treatments. Insured even kept him on the payroll trying to keep it to medical only. Last year, first assigned emod .94; this year 1.59. It's really going to hurt, not just financially, but throws them out of being able to bid so much work.

    Just dumb luck for them. The carrier for the other lines was this close - to adding the work comp line. They overlooked the large loss, did two separate loss control surveys in two states. Loved the management and the other lines have been very profitable with current premium approaching 300K, without the work comp. Right before they did the second loss control, I get a call from the insured: a worker took a fall and broke his hip.

    I could have pretended to not have had that phone call. The apps were into the new carrier with all the loss runs. They did perform the second loss control and had the work comp line rated and ready. I pulled current loss runs to see what the claim looked like. This little fall now has a reserve of $250,000! And I'm looking at an offer for the work comp.

    And I'm trying to get them out of the pool. Hopeful that the $2,000,000 in payroll will be enticing enough to offset the severity losses. But you can hope in one hand and....
     
    AZDave, Mar 15, 2017
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  6. Matt Weiss
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    Matt Weiss New Member

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    Hello,
    My name is Matthew Weiss, President of Selectpeo. I'm excited to reach out and introduce Selectpeo, and how we can build a successful relationship by providing your agency the opportunity to offer Strategic Alternative Workers' Comp Solutions.
    Selectpeo is a premier general agency that offers a competitive portfolio of products that will allow you to grow, retain, and cross sell to your clients. The products we offer have low market penetration to give you the cutting edge advantage. We specialize in PEOs, Strategic Worker’s Compensation solutions and Fortune 500 styled benefit packages. With our competitive portfolio you can maximize revenue and increase retention.
    Our products pay well above average commissions, averaging between 7.5% - 15% of Workers' Comp.
    Brokers Utilize Our PEO Programs For:
    • Pay-as-you-go work comp solutions with no audits
    • To place risks with open/excessive claims, high mods, start ups, high risk class codes
    • Pulling clients out of the State Insurance Fund
    • To handle workers' comp solutions for companies in multiple states
    • To have access to exclusive A rated workers' comp companies only available through a PEO
    • To help clients free up cash flow
    • To offer Fortune 500 style employee benefits
    • To maximize revenue and increase client retention
    I suggest you start by sending us one of your most difficult state fund clients, something you re marketed and never could remove and let us turn that no commission policy into high paying revenue!
     
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