Assigned Risk Plans Are Not Voluntary
Should I have to join the Assigned Risk plans? The Assigned Risk Plan (ARP) is not a voluntary choice. There are other names for the ARP such as risk pool. The rates in the ARP are much higher than the general voluntary marketplace. In fact, I have seen them as high as 400% more than the normal voluntary insurance marketplace.
The ARP is the fail-safe insurer if a company cannot find any insurance with any carrier due to
- high E-Mods – usually 1.4 or above
- type of business
- unsafe workplace
- dangerous occupations
The insurers are required to write a certain percentage of their business from the ARP. The use of the techniques on this website and blog will enable your company to get out of the ARP unless the voluntary insurance marketplace is not writing WC insurance for your type of business.
I have seen temporary employment agencies, loggers, and trucking companies have to go into the ARP as no insurance carrier would write the risks. Most carriers refer to this risk ask market risk.
The ARP can be thought of as a safety net so that certain employers can stay in business and not face fines for lack of coverage. There are methods for removing your company from the risk pool.. Please follow the link. They do take time to have any effect.
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