Is Your Insurance Still Right? Check What You're Rated On
A renewal arrives with a number on it and nothing to compare it to. No statement shows you what the same risk would cost somewhere else.
If you've renewed the same policy three times without a conversation, nothing in that process would have told you whether the coverage still matches the work.
Two things drift without anyone noticing: what you're covered for against what you actually do now, and what you're paying against what that risk prices at today.
Sometimes the answer is that the current program is priced and structured correctly, and the right move is to leave it alone.
I don't charge for a quote.
You can't tell whether a premium is right by looking at the premium; you tell by checking what it's rated on. For Texas workers' compensation, TDI describes three things to check: the classifications your business is assigned, the payroll in each, and the experience modifier that reflects your past losses.
Sources: TDI, Texas workers' compensation rate guide
Check the Classification on Your Comp Policy
The classification is the starting point, because the premium is built on it. TDI says Texas employers "are assigned one or more classifications based on the type of business," and each employee's payroll is then assigned to a classification. Compare the classification wording on your policy to what the business does now.
Ask Your Carrier What It Has on File for Claims
To see the claims history your pricing reflects, ask your carriers for it in writing; Texas gives them 30 days to answer. A property and casualty insurer "shall provide the policyholder with a list of claims charged against the policy and payments made on each claim" on written request under Insurance Code § 542.102, within 30 days under § 542.103. A workers' comp carrier must provide the claims, "payments made and reserves established on each claim," and "a statement explaining the effect of claims on premium rates," also within 30 days under § 2051.151.
Sources: Tex. Ins. Code § 542.102 · Tex. Ins. Code § 542.103 · Tex. Ins. Code § 2051.151
Your Experience Modifier Is Built From Your Loss History
Your experience modifier reflects your past losses, so loss data that's wrong produces a modifier that's wrong. TDI describes it as "an experience rating modifier that reflects the employer's past loss history," applied to the premium.
What Changed Since the Policy Was Written
A program written for the business you had can stop matching the business you have. Changes worth putting in front of your agent:
- You hired your first employee. Texas comp is elective under Labor Code § 406.002; an employer without it files its notice of no coverage through TDI's Employer E-File system.
- You took on a different kind of work. Compare it to the classification wording on your comp policy.
- You added a vehicle. Check whether the auto policy lists it.
- You bought the building you were renting. Check how the building is insured now that you own it.
Sources: Tex. Labor Code § 406.002 · TDI Division of Workers' Compensation, non-subscriber notices and Employer E-File
Questions People Ask
How do I know if my workers' comp premium is right?
Check what it's rated on: the classifications on the policy, the payroll assigned to each, and the experience modifier. TDI's workers' compensation rate guide explains how they combine.
How long does my insurer have to send my claims history?
Thirty days from receiving your written request, under Insurance Code § 542.103 for property and casualty policies and § 2051.151 for workers' compensation.
Will reviewing my insurance lower my premium?
Not necessarily. Sometimes the current program is priced and structured correctly, and the right move is to leave it alone.