Can Your Workers’ Comp Coverage Be Dropped in Georgia Due to Loss Claims?
When Workers’ Compensation coverage is dropped because of frequent loss claims in Georgia, employers might have difficulty finding other insurance. Fortunately, there are many carriers that will provide coverage to employers in these situations, despite their history of loss claims.
Too many loss claims from one company might lead to the cancellation of its Workers’ Compensation policy in Georgia. Carriers tend to do this when they feel like the risk of insuring a company is too high. When this happens, finding new coverage immediately is crucial, as Georgia imposes financial penalties on companies that are without Workers’ Compensation coverage. Once you have found a new policy, you can prevent history from repeating itself by lowering the number of workplace accidents and introducing added safety measures, implementing a drug-free workplace, and investigating accidents as they occur in Georgia.
To get quotes for a new policy, call NPN Brokers at (866) 340-9120 and speak with our Georgia Workers’ Compensation insurance brokers today.
Why Your Workers’ Comp Coverage Might Be Dropped for Loss Claims in Georgia
It can become expensive for insurance companies in Georgia to continuously pay out Workers’ Compensation claims to injured employees. If your employees are frequently getting hurt and filing claims, your insurance coverage might be dropped.
Unfortunately for employers, some Workers’ Compensation insurance carriers might drop coverage anytime for numerous reasons. A primary concern of many carriers is frequent loss claims. Typically, this is seen in more dangerous industries like construction and manufacturing.
The more claims that are filed with your Workers’ Compensation carrier, the more benefits your carrier has to pay out to injured workers. If this occurs too often and becomes too expensive, your carrier might be concerned that your company is not providing the necessary safety training or maintaining a safe workplace environment and might drop your coverage. While workplace accidents are often not the employer’s fault, Workers’ Compensation carriers do not necessarily care about the cause of loss claims that are being paid in Georgia.
With larger workforces, workplace accidents are more common. If your company sees several workplace accidents per year, your carrier might assess the premiums you pay and the industry you are in to determine if too many claims are being filed. Even if you feel as though dropping your policy is unfair based on the number of Workers’ Compensation claims from your employees, your carrier might determine that the risk to insure is too high and cancel your policy.
Reinstating Coverage After Workers’ Comp is Dropped in Georgia
If your previous carrier dropped your Workers’ Compensation policy in Georgia, you will have to find new coverage immediately if your company is required to have insurance.
Typically, a Workers’ Compensation carrier will give a company notice of the cancellation of its policy. This leaves you little time to find a new policy to protect your employees and your company in Georgia. Fortunately, our Workers’ Compensation insurance brokers can source quotes within a day or so, allowing you to get insurance as soon as possible following a policy cancellation in Georgia.
When finding coverage is an immediate need, employers might fear that they will have to agree to an expensive policy to stay in compliance with Georgia’s Workers’ Compensation requirements. While that is an understandable concern, some carriers will still offer you an affordable plan, despite the fact that your company has had numerous Workers’ Compensation claims filed in the past and that its previous plan was canceled because of loss claims.
Any business with three or more employees in Georgia must have a Workers’ Compensation policy. Until you get coverage, you might be unable to proceed with operations, lest you risk getting penalized by the Georgia State Board of Workers’ Compensation. Once you get a new policy, you must inform Georgia’s Board of Workers’ Compensation of your new insurance provider and plan.
How to Prevent Your Workers’ Comp Policy Being Dropped from Loss Claims
Employers cannot prevent all workplace accidents from taking place. That said, there are ways to reduce the frequency of work-related injuries and lower the chance of your policy being dropped because of too many loss claims in Georgia.
Investigating Workplace Accidents
After an employee is injured at work, employers should thoroughly investigate the accident in question. This can be done by interviewing other employees and reviewing security camera footage. Investigations can illuminate fraudulent Workers’ Compensation claims and prevent your carrier from paying loss claims to employees that do not qualify for benefits. For example, an investigation might show that an employee was not actually injured while at work or that they intentionally caused their injuries in Georgia. These are valid reasons to deny a Workers’ Compensation claim.
Implementing Drug-Free Workplace Programs
Enforcing a drug-free workplace program can lower the frequency of workplace accidents and, by extension, loss claims. Georgia’s drug-free workplace program comes with the added benefit of lowering a company’s Workers’ Compensation policy premiums by 7.5%. If an employee is injured at work, employers can submit them for drug testing. If they are found to be under the influence of drugs or alcohol, their Workers’ Compensation claim can be denied in Georgia.
Introducing Added Safety Measures
In some instances, the root of frequent loss claims is improper training of employees. Companies can introduce additional safety measures and require employees to undergo routine training and regular assessments to ensure they are being responsible at work. Reminding employees of the dangers of certain equipment and encouraging them to act in accordance with your company’s safety guidelines can help to reduce workplace accidents and possible Workers’ Compensation claims, lowering the chance that your company’s policy will be dropped because of loss claims in Georgia.
Find New Workers’ Comp Insurance in Georgia
Call NPN Brokers at (866) 340-9120 and get a quote from our Georgia Workers’ Compensation insurance brokers today.
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