January 1 Renewal Date Costly Choice
Usually, a January 1 renewal date will end up costing your company more in Workers Comp premium. Addressing this situation is one of the easiest ways possible to reduce your Work Comp premium. Renewing your policy on January 1st is akin to shopping on Christmas Eve or getting a tax professional’s help the week of April 15th.
Understanding the insurance business cycle benefits all the players including the insured employers.
You may find a gift on Dec 24th or you may find tax help on April 14th, but you may not get the service you deserve as the merchants or tax professionals are overloaded at certain times of the year. It is the same with your Workers Compensation policy.
The majority of policies renew on January 1. Agents, underwriters, in fact, every department is completely overloaded then. If we have any issues where we need to contact an agent, we try to avoid between today (12/10) and the end of the year. Everyone suffers, but who pays the bill for the possible inattention?
Of course, it is the policyholder. You are lumped in with most of the policyholders. In tracking our clients’ files, we find that 60% of them renew on 1/1. Why not use one of the 364 other days to give your agent and carrier time to spend on your policy?
We recommend in all our presentations and to our clients to also avoid July 1, when most of the public entities renew. In fact we recommend renewing in the middle of the month if at all possible, and if your budget allows this to occur.
Strange, but true…………….
Up Next – A List of Red Flags that You May be Overpaying on your Workers Comp. This is one of our most requested Workers Comp documents.
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