Work Comp Claim

[Aiapa]

I have a new commercial client that I wrote account effective 03/15/17. They had a work Comp claim 04/03/17.
This claim is larger than any I've ever been a part of and this will be first time my Loss Ratio will be over 60%.
The claim is still open, but it's concerning to me that it will affect my relationship with insurance carrier.
Any advice?

 

[jlanier]

I have a new commercial client that I wrote account effective 03/15/17. They had a work Comp claim 04/03/17.
This claim is larger than any I've ever been a part of and this will be first time my Loss Ratio will be over 60%.
The claim is still open, but it's concerning to me that it will affect my relationship with insurance carrier.
Any advice?

Shock losses happen all of the time. It's part of the business and definitely sucks. 60% isn't horrible although it will know out most contingency plans. You have time to make up for it just write some more business and it will be alright.

 

[djs]

A single large claim usually won't affect relationships with carriers. That is part of the business. A series of claims has a lot more impact (i.e., poor underwriting on your part).

The bigger concern here is a large claim on a new policy. That can lead to some questions, though these losses happen and again, if its sort of a one time thing, then not a big deal (just usually more questions to you).

Bottom line:
Accidents happen.
Thats why insurance is important.

Dan

 

[InsCommentary]

Aberrations happen. I'd be more concerned about the impact on the insured's experience mod if the reserve is too high and/or remains open longer than necessary. If it can be lowered or closed before the stat card cutoff date (6 months prior to renewal), I'd push for that.

The customer should also make sure they have proper loss control measures in place.

 

[Aiapa]

Thank you for your replies.
Good information that I can and will use. I appreciate your time.