Select Marketing Insurance Services, IFYA’s preferred partner for workers’ compensation insurance in California, introduced its new dba name, Preferred Connect Insurance Center, back in July 2015. The new dba is designed to both capture the full branding value of its parent company, Preferred Employers Group, and to better reflect its broadened service offering to small business owners, including Frozen Yogurt Shops. Under the “Preferred Connect” brand, increased focus will be placed on championing the company’s 4S Program: Safety in the Workplace, Stability of Medical Providers, Personal Service and Maximum Premium Savings for Customers.
The following article is the contribution of Marc J. Beaulieu, CPCU, ARM, Senior Vice President of the Preferred Employers Group and founder and Chief Agent of Select Marketing Insurance Services, LLC dba: Preferred Connect Insurance Center, LLC.
What really matters when purchasing workers’ compensation insurance?
Frozen yogurt shop owners have plenty of business issues to worry about, and because of the big expense, workers’ compensation insurance is near the top of the list.
Here are the top five questions Frozen Yogurt Shop Owners should ask their insurance providers when buying workers’ compensation insurance.
1. Do you specialize in workers’ compensation insurance?
2. Do you manage your own claims or do you hire third party adjusters (TPAs)?
3. Do you provide loss control advice and guidance on employee safety in the workplace?
4. Do you have a personal service plan to handle customer inquiries on a first-call resolution basis? And,
5. Do you have the financial resources to navigate California’s tough workers’ comp insurance market?
Use the following information to help guide your search for the correct answers to these questions.
Expertise Matters
Workers’ compensation insurance is complicated, so it’s a smart idea to deal with experts who know the medical management business and your state’s labor code requirements inside out. If your insurance provider doesn’t have the know-how to effectively work within California’s challenging legal and medical services environment for example, it will cost you more premium dollars in the long run. You don’t want claims adjusters, lawyers, and medical providers learning how to do their jobs on your dime.
An Insurance Company That Handles Its Own Claims
Many insurance providers work with Third Party Adjusters/Administrators (TPAs) to handle their client’s claims—in other words, they do not manage claims themselves. As a result, a certain level of distance and care may occur that is not always in the best interest of the injured employee or the employer that pays the premium for the medical services involved. Make sure you get what you pay for—a workers’ compensation provider that manages its own claims, not one that “farms” out claims handling to third party adjusters or administrators.
Workplace Safety Advice Matters
To really improve workplace safety and health, you need an insurance partner who will provide the safety services you require online for easy, time-efficient access or if you need it, be able to offer a thorough worker safety evaluation of your place of business. The whole idea behind “loss control” services for your workplace is to make your business a safer place to work and to keep your employers on the job.
In California, all employers—big and small—are required to have an official Injury & Illness Prevention Program (IIPP) that identifies and addresses particular workplace hazards. The IIPP regulation also mandates that employers train their employees on any hazards specific to their workplace. Failure to have an IIPP and to train employees on workplace safety can result in a fine of $7,000 from Cal/OSHA.
Real Personal Service Matters
These days, everyone wants personal service. While most insurance providers claim to offer it, few deliver on that promise. Finding an insurance provider that actually delivers the personal attention you deserve will save you both time and money.
Every call you make to your insurance company costs you valuable personal time. So if you can achieve resolution on the first call, you eliminate the need for any subsequent calls— which could save you hours of unproductive time. Beware of any company that expects you to waste valuable time navigating their voicemail tree.
The Financial Condition of Your Insurance Provider Matters
California has the toughest workers’ compensation insurance market in the country. Profitability challenges faced by several workers’ compensation insurance companies in the state continue to complicate matters for employers. In response to a decrease in profitability, a number of insurers have either reduced their California writings or have left the market completely.
Make sure that your insurance company has at minimum, an A.M. Best Company rating of A+ (Superior). You never want to find yourself in a situation where injured employees cannot be medically treated or are forced to receive delayed medical treatment because your insurance company became insolvent.
The Bottom Line
In California – where workers’ compensation insurance is expensive – frozen yogurt shop owners need to do all they can to get the best combination of price and coverage from their insurance provider. The best way to do this is to choose an insurance partner that can answer the above five questions in a manner that “matters” to you. You’ll want to align yourself with the best of the best—a specialty insurance company that actually knows more, does more, and cares more about employees and the entrepreneurs who lead them.
For additional information, please visit www.preferredconnect.net or follow @PreferredWC on Twitter.
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