The loss cost rate which went into effect on 10/1/2013 will affect all renewals after that date. The increase for class code 2121 is a staggering 41.6% increase!
How do New York breweries deal with that sort of a workers comp rate increase? Well there are several methods, but one which is often engaged in which has very limited results is the traditional shopping exercise. That exercise is one where the brewery invites in 3 or 4 brokers to compete for the business. This process has long been flawed and does not deliver substantive results. True results start months before the renewal date to determine if your experience rating modifier is correct by conducting an audit of the mod, installing a safety program, and other risk management techniques that help reduce risk. We know that reduce risk equals reduced costs.
If your brewing operation is insured under class code 2121 – NOW is the time to start working on reducing risk – regardless of when your policy renews. For more information on our unique and diagnostic risk management process, please contact us. Just remember, waiting until the last minute will not help reduce that 41.6% pending increase!