Choosing the right Workers Comp MGA (Managing General Agency) can be a difficult task and one that shouldn’t be taken lightly. Three essential features to look for when considering which MGA to work with are underwriting authority, fast, reliable services, and flexibility. One thing is certain, workers’ compensation insurance is a must have in order for a business to be effectively protected against various liabilities they may face when a worker goes down with a job-related injury.
- Solid underwriting authority – The insurer must have vested an agent with underwriting authority in order for that agent to be fully qualified. With this authority, an MGA can assist clients by evaluating their risks and determining a coverage option that will take these risks into account. Clients benefit from that expertise because of their having a greater knowledge of a trade or industry and the ability to provide enhanced policy benefits.
- The capability to provide faster service – Brokers rely on their ability to provide faster quotes. Because time has a certain value, and many businesses simply cannot afford the time often wasted sitting and waiting for an agent to prepare a quote, they rely on brokers who can expedite the underwriting process. Many agencies offer quick turn-around on quotes making them highly desirable.
- Flexibility is another key component – The MGA will be the one that will determine a client’s premium, but the terms of payment can sometimes allow a marginal amount of freedom for clients. Agents that are flexible in this regard often demonstrate a desire to work with clients that have special circumstances and show a willingness to meet their unique needs.
MGAs come in different shapes and sizes, whereas some offer a real specialism in an area where the people running the MGA are bringing value to the chain. The Workers Comp MGA is an actual operative body of the insurance carrier charter that acts as the carrier in all carrier operative activities, decisions and business development, such as executing the authority of the carrier charter pen as appointed and contracted by the authorized owners of that carrier charter/pen of authority.