Is Your Workers’ Compensation Carrier Licensed Nationwide?

PREVENT E&O EXPOSURE:
Do you know if your client is intending to expand their operations this year?
Depending on where your insured’s current carrier is licensed could present a potential E&O exposure to you. When a client wants to expand their operations to more than one state, there are things you need to know. To understand this better, let’s review some of the Workers’ Comp. basics. A Worker’s Compensation policy has 3 parts:

Part 1: Workers’ Compensation Insurance
Part 1 of the WC policy is where an employee that is injured gets coverage for an injury in the workplace.

Part 2: Employers’ Liability Insurance
Part 2 of the WC policy is dedicated to Employers Liability, should a suit be filed regarding an injury that resulted from workplace negligence.

Part 3: Other-States Insurance
Part 3 recognizes the other states that are covered under the WC policy.

If at the beginning of the policy year, an insured believes they may be going into a particular state, they should definitely add that state to their policy. We get a lot of questions on this. Oftentimes, problems can arise when you have an insured that decides to expand and operate in other states where your carriers may not be licensed. This results in a limitation of coverage and can potentially lead to an E&O exposure for an agent. It can be a headache for all parties involved.

It’s always good practice for agents to list and be aware of the states their insured is currently doing business in and all states they may potentially do business in. Once the agent is aware of states their client is doing business in, All Risks can help accommodate the necessary coverage.

MORE COVERAGE, LOW COST
List all potential states to receive maximum coverage.
An additional benefit to listing all the potential states where an insured may be working is greater coverage with minimal added costs. States can be added, providing exceptional coverage for pennies on the dollar.

UNDERWRITING FLEXIBILITY
Could your Underwriters be more flexible?
With over $350 million in-force Workers’ Compensation premium, All Risks producers have strong relationships with their nationally admitted carrier partners. While some of our markets may be the same ones you already do business with, a big advantage to working with All Risks, is that our large premium volume on the books can provide additional leverage to expand our eligibility & often allows for a broader appetite in these relationships.

The next time you have clients who are considering the expansion of their operations to multiple states, please contact an All Risks WC Underwriter dedicated to your territory. It’s unnecessary to leave yourself open to a potential E&O exposure. Secure the most favorable terms and conditions for your client with our All Risks WC experts who have technical underwriting experience and the competitive mindset you need to go the extra distance with each and every placement.
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Legal Disclaimer: Views expressed here do not constitute legal advice. The information contained herein is for general guidance of matter only and not for the purpose of providing legal advice. Discussion of insurance policy language is descriptive only. Every policy has different policy language. Coverage afforded under any insurance policy issued is subject to individual policy terms and conditions. Please refer to your policy for the actual language.