What is worker’s compensation underwriting and in what ways does it relate to American risk insurance? Quite a lot, as a matter of fact. Underwriting is all about assessing risks, so as it happens, the two often go hand in hand.
What Is Underwriting?
When an insurance policy is underwritten, that means that the risks are assessed and compared to similar risks. In other words, the entity buying the insurance policy, whether it be an individual or a company, will pay a similar amount in premiums to individuals or companies facing similar risks. All sorts of insurance policies, whether personal or commercial, may be underwritten. Underwriting is a way to ensure that premium amounts are fair for both the insured and the insurance company.
Why Might Workers Compensation Policies Be Underwritten?
Some businesses are more dangerous than others. Employees working in mining, shipping and transportation, manufacturing, or construction face greater risk than employees in other industries. An underwritten workers compensation policy gets employers a fair premium without skimping on the benefits employees deserve. In other words, workers compensation underwriting helps to protect everyone.
Workers compensation coverage is required in many states. If you feel that your premiums are too high or your insurance needs are not being met, consult an expert in American risk insurance.