Managing General Agents Streamline Workers Compensation Plans
Unlike traditional insurance agents or brokers, a managing general agent, or Workers Comp MGA, has the authority from an insurer to underwrite worker compensation plans. MGAs are effective in situations where special or in-depth knowledge of certain coverage is necessary. They also provide service in more sparsely populated areas, to supplement local in-house insurance coverage resources. MGAs are vested with the authority to:
- Provide binding coverage
- Underwrite and set pricing
- Appoint retail agents within a particular area
- Settle claims
A Workers Comp MGA typically has the advantage of being connected to a national network of insurance coverage sources. This access makes it easier to find the fit that works best for an individual employers situation. Agents have comprehensive knowledge of a variety of plans, including guaranteed cost, large deductible, or loss-sensitive plans and excess workers compensation. An agent will help analyze the individual needs of an operation in order to help employers settle on the best coverage for the business. Factors include loss experience, size of the company and risk tolerance.
Many types of businesses can benefit from the help of a workers comp MGA. Plans can be customized for employers in manufacturing, transportation, education, healthcare, not-for-profit operations and others. An MGA has the knowledge and authority to underwrite surplus and unusual lines of insurance, if that is what a business requires to be appropriately and thoroughly covered.