Boutique Worker Comp carriers provide flexibility to market place.
(1888PressRelease) September 04, 2013 - As carriers continue to withdraw from various market segments, many brokers are seeking to fill the void by placing the workers comp exposure with smaller niche carriers that self elect not to carry a rating.
Many brokers and insureds do not realize that if a carrier is licensed and admitted in a state, its has the exact same financial safeguards via each states Guarantee Fund that rated carriers have.
In addition to not understanding the financial safeguards of WC carriers, many in the market do not understand that the state WC funds do not carry ratings as well. "For many insureds, the only option is the State Fund, which doesn't have the service standards of the traditional market," said Rick Loschiavo, Scirocco Group, Hasbrouck Heights, NJ. "Boutique carriers have underwriting flexibility but are still disciplined in writing business with much higher service standards. They do not class code underwrite."
However, brokers have a tendency to shy away from non-rated carriers do to errors and omission concerns. "Workers comp is no fault coverage, therefore there are no coverage disputes and there are no limits because the coverage is statutory," indicate Jim Culligan of James T. Culligan and Associates, Oakmont, PA. "I analyze the carriers surplus, cash and reinsurance structure to become comfortable in placing business with a non-rated carrier."
Brian Heun of KMRD Partners, Warrington, PA agreed. "As a broker, I am less concerned with the financial rating of a clients workers compensation policy than another line of coverage such as property or liability. Other lines of coverage do not have the statutory fall back position that workers comp has. Therefore, I am more interested in the ability for the Work comp carrier to be creative. The ability to structure cash flow which makes sense for the customer and provide a strong claims and risk support service model. In the end, this is what will help the client reduce costs, and become stronger operationally."
For more information regarding the services provided by Archway, you can contact Eric Bossard at 610-719-0838 or ebossard ( @ ) archwayins dot com dot
Boutique Worker Comp carriers provide flexibility to market place. 
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