7. As the Loss Costs or Advisory Codes are the same for each classification code in each state, is there really much of a difference between quotes for my Workers Compensation coverage? Can I just pick an agent and go with whatever she/he says?

Yes, there can be a difference of up to 600%. This is because the Workers Comp insurance carriers can file deviations to as many of the Loss Cost codes as they wish to in any given state. Most insurance companies file one single deviation for all of the codes in a certain state.

I have seen the deviation in one state differ from .75 to 2.75 between Workers Comp carriers.

To add even more of a difference on your Workers Comp premiums, there are Scheduled Debits or Credits that can influence your policy. The deviations are from a 25% debit (additional premiums) to a 25% credit (reduction in premiums). That is a 50% difference in your Workers Comp premiums that is totally left up to the individual carrier. There are techniques to increase your Scheduled Credits.

Let's use an example to show how much of a difference there can be between carriers. We are not counting in your E-Mod.

• Your company pays $100,000 in premiums.
• Using the rate deviations from above, the lowest would be $75,000 and the highest would be $275,000.
• Taking that one step further, adding in your Scheduled Debit/Credit would make the range of premiums start at $56,250 to $343,750.
• That is over a 600% difference, actually 611%.

When you pick an agent, keep the 600% difference in mind. Is your insurance agent getting you the best deal? How do you know if it is the best deal? Are you in the State Risk Pool where you are charged 400% more for coverage? There is much more that should be considered beyond just picking a Workers Comp insurance agent. Where are you paying on the scale from $56,250 to $343,750?