Being non-renewed by your workers’ compensation carrier can be an unsettling experience—especially if it catches you off guard. Whether it’s due to high claims, misclassified employees, or financial instability, a Non-Renewed by Workers’ Compensation Carrier doesn’t mean you’re out of options. In fact, how you respond can make all the difference in keeping your business protected and compliant.
Here’s a step-by-step guide on what to do next.
Step 1: Understand the Reason for Non-Renewal
Your first step is to determine why your policy was not renewed. Carriers are typically required to give written notice—often 30 to 60 days in advance—explaining the reason.
Common reasons include:
- A poor claims history
- Misreporting payroll or class codes
- Lapses in premium payments
- High-risk operations or expansion into new industries
- Significant growth or staffing changes
Tip: If the notice isn’t clear, contact your insurance provider or broker directly for clarification.
Step 2: Gather Your Documentation
Start collecting everything a new insurer might need:
- A loss run report (5 years preferred)
- Payroll records and job classifications
- Safety protocols or injury prevention programs
- Business financials (if applicable)
The goal is to present your company in the best possible light and show that you are actively managing risks.
Step 3: Contact a Workers’ Comp Broker or Agent
If you don’t already work with an independent broker, now is the time to find one. Brokers have access to multiple carriers and can help you:
- Navigate the transition quickly
- Understand why you were non-renewed
- Find the most competitive quotes based on your risk profile
A good broker will act fast—especially since time is usually short once non-renewal notices are sent.
Step 4: Explore Alternative Coverage Options
Depending on your risk profile and situation, here are your main options:
1. Standard Market
If your business is stable with only minor issues, you may still qualify for coverage through another private carrier.
2. Assigned Risk Pool
High-risk businesses that can’t find a private insurer are often placed in a state-assigned risk pool. These policies are more expensive but fulfill legal requirements.
3. PEOs (Professional Employer Organizations)
Some businesses use PEOs to bundle workers’ comp with payroll and HR services. This may be a temporary or long-term solution depending on your needs.
Step 5: Avoid a Coverage Gap at All Costs
A lapse in workers’ compensation coverage can lead to:
- Hefty fines
- Legal action
- Stop-work orders
- Difficulty getting future insurance
To avoid this, don’t delay. Even if you need to temporarily accept a higher premium through an assigned risk plan, maintaining continuous coverage is crucial.
Final Thoughts
Being non-renewed by your workers’ compensation carrier is a setback, but not a dead end. With quick action, the right partners, and a focus on safety and compliance, you can regain control and secure coverage that protects your business and your employees.