For insurance agents, placing workers’ compensation coverage for startups and small businesses presents unique challenges. Many traditional carriers are hesitant to cover these businesses due to limited claims history, unpredictable risks, and premium minimums — especially for high-risk industries like construction, staffing, and healthcare.
Fortunately, workers’ comp wholesalers like Landmark Wholesale provide alternative solutions for tough-to-insure clients. In this guide, we’ll explore common mistakes small businesses make, alternative coverage options, and how partnering with a workers’ comp wholesaler can help agents secure the best policies for their clients.
Common Mistakes Small Businesses Make With Workers’ Comp
Small businesses often make errors that can lead to higher costs or denied coverage. Here are some key mistakes to watch for.
- Not understanding state requirements: Workers’ comp laws vary by state, and some businesses mistakenly assume they don’t need coverage. Non-compliance can result in heavy fines, legal issues, and even business closure.
- Misclassifying employees: Using the wrong classification codes can lead to overpayment or underpayment of premiums, potentially triggering audits, fines, or policy cancellations.
- Defaulting to assigned risk pools: Many small businesses believe assigned risk pools are their only option, but these come with significantly higher premiums. Exploring wholesale options can lead to better coverage at lower rates.
How Insurance Agents Can Help Clients Secure Coverage
As an agent, you play a critical role in ensuring your clients find affordable, compliant workers’ comp policies. Here’s how you can help:
Educate Clients on Risk Management and Compliance
Many small-business owners focus primarily on cost when purchasing workers’ comp coverage. However, after experiencing a claim, they often realize the importance of risk management, workplace safety, and claims handling. As an agent, you can guide clients on best practices for preventing injuries, staying compliant with regulations, and improving their overall safety culture — factors that can ultimately lower their premiums and improve insurability.
Explore PEO Compliance and Alternative Markets
When traditional carriers won’t provide coverage, professional employer organizations (PEOs) can offer a viable solution. PEOs provide integrated HR and workers’ comp solutions, allowing small businesses to share risk while ensuring compliance. However, PEO compliance requirements vary by state and industry, making it crucial to work with experienced wholesalers who understand these regulations.
Partner With a Workers’ Comp Wholesaler
A workers’ comp wholesaler helps agents access specialty programs that standard carriers don’t offer. Landmark Wholesale, for example, provides solutions for small businesses and high-risk industries, making it easier for agents to place difficult accounts.
When To Work With a Workers’ Comp Wholesaler
A workers’ comp wholesaler is the best option when:
- Standard carriers deny coverage: High MOD scores, lapsed policies, or complex risk profiles can lead to rejections.
- The business operates in a high-risk industry: Construction, transportation, healthcare, and staffing often require specialized placement.
- Multi-state coverage or customized programs are needed: Businesses operating in multiple states must navigate varying workers’ comp regulations. Landmark helps agents secure appropriate policies that meet compliance requirements.
Get Expert Workers’ Comp Placement With Landmark Wholesale
Landmark Wholesale specializes in helping agents place difficult workers’ comp accounts. Whether your client is a startup, operates in a high-risk industry, or has been denied coverage, we offer customized solutions to fit their needs.
Why work with Landmark?
- Nationally licensed and bonded: We provide coverage across all 50 states.
- Access to alternative markets and PEOs: We offer solutions beyond traditional carriers.
- Technology-driven underwriting: Our streamlined system makes policy placement faster and easier.
- Risk management and compliance support: We partner with Zywave to provide HR compliance and training resources.
- Quick and efficient placement: We help agents secure coverage with minimal delays.
Don’t lose business because of tough underwriting requirements. Partner with Landmark Wholesale to access the best workers’ comp options for even the most challenging accounts. Let’s find the right solutions for your clients today.
About Landmark Wholesale
Landmark is a nationally licensed facility for tough-to-place risk with a focus on securing alternate workers’ comp solutions. From PEOs to specialty programs, we offer access to coverage solutions other wholesalers can’t. Our recent placements include complex risks in staffing, transportation, and construction sectors — demonstrating our ability to secure coverage where others fail. Partner with Landmark Wholesale to find solutions for your toughest accounts and expand your market reach.
