Protect Your Workers' Comp Insurance
By Chuck Coppage
October 2003
We wish we had some better news for you. The current workers’ compensation marketplace is continuing to deteriorate. We are seeing insurance companies continue to have financial problems and turn away new business whenever possible.
The State Compensation Insurance Fund has always operated as the market of last resort for companies that for whatever reason were unable to secure coverage from another carrier. Recently the State Fund severely restricted their new business writings. In addition, they will not accept accounts that have been quoted by another insurance carrier. In many cases this has led to businesses going without insurance for a period of time. You cannot depend on the State Fund to rescue you anymore.
We strongly urge you to protect your current coverage at all costs and make SURE you are not cancelled for any reason. Remember, the carriers are actively looking for reasons to terminate your account. To avoid cancellations you MUST do the following:
- Pay all premiums on time. Most carriers, especially Preferred Employers, are not allowing any grace period past the date of cancellation.
- Co-operate with the carrier on requests for mid-term payrolls reports.
- Be sure to provide the information needed to complete your final audit at year end.
- Co-operate with the safety and health people if they contact you.
Those of you with workers compensation policies renewing in October should already have your loss runs ready. If you don’t, start TODAY!!! If you have any questions or want to get the best quote going give our ASC Insurance Services a call today toll free at 877-250-1979 and let us help you. You can also download Workers' Compensation and Garage Keepers' forms.
One other thing we all need is more ASCCA members getting involved with the reform efforts underway in the legislature. Call or write your assembly member or state senator and tell them you expect them to pass legislation that will cut costs and restore solvency to the California system. Only your input as business people will cause them to take this issue seriously. We will continue to provide you with updates as they become available.
