A major factor in underwriting of Workers Compensation insurance is loss ratio, defined as losses divided by premiums. Not long ago a loss of $10,000 by one contractor paying $20,000 a year in premiums would generate a loss ration of 50 percent. However, in today’s economy of smaller payrolls that same $10,000 loss, coupled with an annual premium of $10,000, would generate a loss ratio of 100 percent and make that contractor a much less attractive risk to an underwriter.
In order to protect yourself from unwanted premium increases, or the dreaded cancellation notice, loss management and aggressive safety programs are a must.
Don’t cut back on your safety program. Time and money spent on loss control now will generate a better return than it did when your premiums were much higher. To make sure your safety program is up to the task, contact the Loss Control Department at the S.C. Home Builders Insurance Self Insurance Fund (SCHBSIF) by calling 800-678-8178.
Did you know that builder members of the Home Builders Association of Greenville have exclusive access to workers comp insurance with SCHBSIF? Take advantage of all of the benefits of membership by visiting http://www.hbaofgreenville.com/page/advantage.