Selecting an Excess Insurer for Self- insured Workers’ Compensation

Considerations for Selecting an Excess insurer for a Workers’ Compensation Self-insurance Program

Some of the factors to take into consideration when choosing an excess insurer are as follows:


A company will need to be assured that the excess insurer will still be in existence when claims need to be paid. A.M. Best provides ratings for each insurance company with A+ being the highest category. 


A self-insurer will need to be assured that the excess insurer responds quickly, efficiently and responsibly to any claims so that it is not left having to fund them itself. 


A self-insurer will need to be assured that the excess insurer's prices are not out of line with the market or excessively high. The insurance broker or Third Party Administrator should provide alternative quotes at the beginning and at each renewal, but unless there is a significant price differential and all other things being equal, changing insurer should be resisted. Insurers normally take into account prior loss experience and add a discount if the insured has been a loyal customer, moving to another insurer for a short-term gain can often turn out to be counter-productive. 

Pricing Responsiveness

If a self-insurer's experience is positive and a bank of premium with the insurer is developed, it will want to be assured that the excess insurer will take this into account in calculating future premiums in order that the company will benefit from reduced premiums.

Also in this section

A History of Workers' Compensation
Reasons to Consider Self-insuring Workers' Compensation
Initial Considerations For Self-Insuring Workers' Compensation
The Information You Will Need to Self-Insure Workers Compensation
Self- Insuring Workers Compensation - The Four Step Process
How Workers Compensation Excess Insurance works