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Choose Your Insurance Agent Wisely
By Randy Sieberg, CIC, ARM, CRM

Would you take a vehicle to a legal professional for repairs or ask an auto mechanic to write and implement a last will and testament? Probably not. Do you buy workers compensation coverage from an agent who advertises the "cheapest auto insurance in town?" Probably not.

As with all professions, you will find a wide variety of knowledge and expertise between insurance agents. Selecting the proper agent, one who has knowledge, experience and understanding of the workers compensation process, is very important. An agent is the contact between your business and workers compensation insurance company. An agent should be able to assist you in placing workers compensation coverage with a company who understands your type of business operation and who is financially stable and committed, as shown with a positive track record, to remaining in the workers compensation market place. A company who will be there to provide claims services for your business when you need them.

Keep these in mind when selecting an insurance agent;

• A direct writing agent is an employee of the insurance company, and will be limited to providing only the coverage his company offers.
• An independent agent represents different insurance companies and should be able to provide you with a variety of carrier options.
• An agents primary job is to sell insurance, not to spend "selling" time looking for ways to reduce or return premium to your business.
• Few agents have real experience or desire to review your payroll audit worksheets or review your experience modification worksheets and make complicated corrections.
• Many agents are not educated in the complicated rules and regulations as set forth by NCCI or other regulatory bodies.

As an employer you must be diligent in the selection of who represents your business to the workers compensation insurance company. Workers compensation coverage is available from many sources and your selection of an insurance agent may help or hinder access to the best sources for your business.

This article is brought to you by WorkCompConsultants.com, an independent workers compensation consulting firm dedicated to helping employers prevent and resolve work comp issues.