There are many different ways to buy a workers’ comp insurance policy in Kentucky. Let’s break down the different options available to you in this video and the pros and cons of each.
I am Adam Sheridan with Reed Brothers Insurance and one area of insurance we focus specifically on is workers’ compensation. From one-man shops to businesses with hundreds of employees, we’ve built insurance programs for each level of your business.
There are essentially three different ways to buy a workers’ comp insurance policy in Kentucky. You can buy directly online from an insurance company, buy from a captive agent, or buy from an independent agent. Let’s dive a little deeper into those options.
Buy Online Directly From An Insurance Company
What’s the biggest pro to this option? It is probably the quickest and maybe the easiest way to get a policy claims-handling downhill from there.
What can go wrong if you go this route?
- The policy is not set up right
- You get a massive audit bill at the end of the year
- You have claims handling issues
If any, or worse all, of these, happen to you, then you’re probably going to end up feeling like you’re alone on an island. Another negative piece of this puzzle is you are likely to receive a quote from only one insurance company.
If I were to offer my recommendation, it would be to not go this route.
Buy a Workers’ Comp Insurance Policy from a Captive Agent
This is at least a step in the right direction because you are working with an actual human.
It’s probably an agency you likely have your home and car insurance with so there’s some familiarity there as well.
Where could this option go wrong? The main problem is your business will likely be limited to only one company offering you a quote or policy. If the rates go up, or if you had a bad experience with the company this can feel like a drain on your business. Because captive agents also deal primarily with home and car insurance daily, they aren’t likely to have as many resources and workers’ comp-specific knowledge available to better serve you.
Buy a Workers’ Comp Insurance Policy from an Independent Agency
The third option is buying from an independent insurance agency which is what we are here at Reed Brothers Insurance. That doesn’t necessarily mean you work with Reed Brothers. Your business might not be the right fit for our agency, or we may not be the right fit for you.
As we’ve discussed in other videos, we have partnerships with a lot of insurance companies here in Kentucky. Those companies are either niche workers comp companies, meaning they only offer workers comp insurance in Kentucky and nothing else and they specialize in specific industries, or they offer a variety of insurance products to handle all of your business insurance needs such as commercial auto, liability, property, tools, and equipment, and so on.
This is where we come in. We work with you to learn about your business and connect your industry, the work you perform, the size of your business, and other factors to pair that with the best insurance, but more specifically, the best workers’ compensation insurance company for your business. We have workers comp insurance companies that specialize in contractors, trucking, healthcare, restaurants, manufacturing, hospitality, garage, and dealerships, and I could keep going. Finding these workers comp insurance companies that specialize in your line of business can only be done by working with an independent agency like Reed Brothers Insurance.
Next Steps
If you own a business and have employees in Kentucky, and have more questions about your workers’ comp insurance program, give us a call at 606-679-6311 or email me at asheridan@rbisomerset.com. You can also visit our video library to answer your business insurance questions anytime.
We look forward to working with you.
