Receiving a declination for a workers' compensation quote can be frustrating, especially when you're trying to secure the right coverage for your business. EverPeak uses a thorough and data-driven process to evaluate each application. Below, we’ve outlined the common reasons why your workers' compensation quote may have been declined and what you can do next.
Declination Reason: "Tiering is Declined for this Workers' Compensation Line of Business"
One of the primary reasons a workers' compensation quote may be declined is due to the outcome of our tiering process. This process involves running an actuarial model on each account. The model considers a variety of specific risk attributes unique to your business to predict a loss ratio.
What is a Loss Ratio?
A loss ratio is a metric that compares the amount of claims paid out by an insurer to the amount of premiums received. A higher predicted loss ratio indicates a higher likelihood of claims being filed, which translates to a greater risk for the insurer.
Why was my quote declined?
If our actuarial model predicts that the loss ratio for your business is too high, we will decline the risk. This decision is made to maintain the overall health of our insurance portfolio and ensure that we can continue to offer competitive rates to all of our clients.
Can this decision be overturned?
Unfortunately, we are unable to override these declinations. The tiering process is designed to be objective and data-driven, leaving little room for exceptions. If your quote was declined for this reason, we recommend reviewing the risk factors that may have contributed to the high predicted loss ratio and exploring ways to mitigate these risks in the future.
Declination Reason: "Non-Preferred Quote Not Bindable at This Time"
Another possible reason for a quote declination is that the quote was classified as non-preferred and, therefore, not bindable at this time.
What does non-preferred mean?
A non-preferred quote typically means that the application does not meet the ideal criteria set by our underwriting guidelines. This could be due to a variety of factors, including but not limited to, the nature of the business, claims history, or other risk-related elements that fall outside of our preferred risk profile.
What should I do next?
If you receive a declination notice with this reason, the next best step is to contact your Attune account manager. They can provide you with more detailed information about why the quote was declined and guide you through the next steps to potentially resolve the issue. Your account manager may suggest adjustments to your application or offer alternative coverage options that better align with our underwriting guidelines.