First of all, don’t worry. This means that the insurance carrier requires a member of their underwriting team to review your case before issuing a quote.
Find out more below.
In some cases, insurance carriers give independent agents authorization to issue a workers’ compensation policy without checking with them first. If your case is being “referred to underwriting,” one of the carrier’s underwriters must review the details prior to approving a quote. Underwriters are responsible for assessing risk in order to determine the coverage and cost of an insurance policy.
Quotes that require underwriter review may include:
As a reminder, workers compensation insurance carriers look at three main factors to determine coverage and cost: what you do, where you live, and what your claims record is.
In the meantime, you might receive a quote from your agent, but that price is contingent upon the carrier’s approval. You may only wait several hours for the carrier to review and approve the quote. Or, the underwriter might contact you (through the insurance agent) to gather more information about your business. Expect to wait approximately 24 – 72 hours for a quote.
Worst case scenario, the carrier believes your business is too risky to offer a policy at this time. If that happens, you still have options to secure the coverage required by law. Here is where to go if your quote is denied: What Do I Do If My Quote Is Denied?