How to Keep Your Flat Work Comp Dividend
Don’t be surprised if your renewal comes through with a significantly reduced dividend or none at all. The insurance market is changing. The soft market and other external financial factors warranted workers compensation carriers to offer large flat dividends to their commercial insureds. Those days are numbered. (See CFO.com September 18, 2012: Insurance Rate Outlook: From Flat to Soaring)
- If your flat dividend is significantly reduced, how do you fight to keep it?
- If you’re offered either a flat or a variable dividend, how do you know which one to choose?
- Perhaps your only choice at renewal is a variable, how do you ensure that you receive the most dividend that you deserve? The simple answer to all of these questions is that you earn it… Here’s how:
Fight to keep the flat dividend that you have
If your loss ratio is perfect and if you have the systems and programs in place to keep your losses at a very minimum, then your broker should be presenting you in that light. Prove that your business is worthy of the flat dividend by showing your process controls. Your loss ratio will be a key driver of this.
Flat or Variable Dividend – which one is right for your business?
This depends on your loss ratio. Obviously, if you have a big flat, then try to keep it. If you are offered a low flat or a higher variable dividend, it’s a gamble. Do you have the processes in place to ensure a low loss ratio? Do you have a return to work program? A culture of safety? Accident investigation processes that work in your favor? How do you manage your experience MOD? If you’re doing these things correctly, then perhaps the variable is the right choice. The correct processes and programs in place will enable you to earn as much of the variable that’s offered.
If your only choice is a variable dividend, how do you earn the maximum? The same above applies. Earn it. Earn all of it. It’s possible, with the right resources, the right processes, and a zero-accident culture, that your business can earn the workers compensation dividend that it deserves.
Wisconsin businesses, if you don’t have these processes in place, if you don’t have local in-house resources to help make this happen, or if your broker isn’t looking out for your best interest when it comes to fighting for your dividend, then you need to contact a knowledgebroker.
3 Ways to Improve Your Chances of Earning a Workers Compensation Dividend
Advantages of a Structured Return to Work Program
3 Common Mistakes of Accident Investigation
Making Time Work For You in a Workers Compensation Claim