Why Is Being A-Rated Important with Workers’ Compensation Insurance?
Making sure you get workers’ compensation coverage from an A-rated insurance company is a must to ensure full protection for your business.
Key takeaways:
If employees have an accident or are injured on the job, it can be extremely serious for an organization. Small businesses can be hit hard if something goes wrong, and a lot of compensation and legal issues can be involved. You always want to ensure that you’re getting the best insurance coverage possible so that you have the support you need in these cases.
This is why making sure your?insurance carrier is A-rated, meaning that the insurance company has this high official rating from credit agencies, is crucial for your business.
What does this designation mean, exactly? And why is it so important with?workers’ compensation insurance? Here is everything you need to know.
What is an A-rated insurance company?
You always want to work with an?insurance company that’s A-rated, meaning it is financially stable and more likely to hold up the terms of the policy they give you. These organizations are usually more likely to:
Credit rating agencies issue these grades, and they range from D being the lowest, or “Poor,” to A++ being the best, or “Superior.” Note that even though A++ is technically at the top when many people refer to “A-rated,” they mean that a company has any of the A ratings, including A++ or A+ as well.
Many labor-related industries must show evidence of A paper to secure job bids for potential clients. Their clients want to make sure that nothing will go wrong with their workers’ compensation coverage should something happen on the job.
How does a company get an A rating?
Not all insurance?companies have these high ratings, though many of the major U.S. companies do, like Allstate, State Farm, Farmers, Geico and many others you’ve probably heard of. There are a few factors that play into what an insurance company will rate. These include:
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Each agency may prioritize different factors when giving ratings, but the most important are an insurance company’s financials. A high rating means that an agency has deemed a company financially sound and able to meet ongoing insurance obligations. The most common rating agencies are Moody’s, A.M. Best, Fitch, and Standard & Poor’s.
Keep in mind: sometimes insurance companies may still struggle or go bankrupt, even if they have a high rating. However, these ratings will generally give you an idea of how much you can count on a given company when looking for workers’ compensation insurance.
Why an A rating is so important
As a small business, you always need to have the best coverage in case your employees have to make a?workers’ compensation claim. Viewing an insurance company’s rating allows you to evaluate which companies will give you the best in terms of their financials and credit, and thus their likelihood of staying reliable and active during your coverage period.
When something goes wrong on the job, such as a work-related injury, illness, or accident, you never want to be left on the hook to cover expensive medical bills or get involved in a complex legal matter because your coverage fell through. This could happen with illegitimate insurance providers or companies that go bankrupt.
Make sure that you only get the best coverage. Working with HR professionals can help you can the job done.
Work with StaffLink Outsourcing when you have questions
These matters can be a bit challenging to understand when running your small business. But one thing is certain: you always want to make sure you have the right workers’ compensation coverage from a highly rated insurance company.
Work with?StaffLink Outsourcing?when you need assistance with workers’ compensation. Our experienced professionals will review your current strategy and offer guidance for the best approach to ensure compliance.?
We help you create a safe work environment and can take on full liability for workers’ compensation. Each of the insurance carriers we work with are A+ rated by Standard & Poor’s, so you’re never left guessing about the kind of service you’ll receive. Our claims managers will always ensure that your business is getting the best coverage, including the right premium amount.?
Protect your organization with better workers’ compensation insurance coverage with StaffLink. Never worry about paying a deposit or audits, and enjoy incentives from us when you follow through with certain safety policies.
Contact StaffLink Outsourcing?today or?request a proposal?online to get started with this service and others that we offer, including payroll, benefits, and other HR support services.
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