How Effective Brokers and Payors Can Save You Money

By Haley Bass | 05/12/2017

When dealing with a workplace injury, the cost of workers’ compensation and injury care can add up if you don’t have the right partners. You want a knowledgeable broker and fair payor on your side.

Here is what you should expect from your broker and payor when it comes to workers’ compensation insurance:

Broker

An insurance broker serves as a liaison between your company and the insurance marketplace. Their job begins before an injury even occurs, working with you to find the coverage that’s best for your company. They use their knowledge of your company, experience in the industry, and insurance network to determine your best policy options. After helping you to select insurance, they’ll negotiate terms with the insurance company. Brokers will help you educate your employees on workers’ compensation benefits. In some markets, the broker will assist employers in educating employees on the benefits, completing enrollment forms, and ensuring that enrollees receive the necessary documentation.

Pros of having a good broker:

• Advice on the best policy for your workplace
• A dedicated advocate to negotiate with the insurance marketplace for you
• Leverage in negotiating your policy
• Education on benefits, pricing, coverage, documentation, etc.

Risk of not using a broker:

• Time lost to seeking options, trying to understand policies, and negotiating
• Potential to be taken advantage of in terms of pricing
• Missing out on great policies from lack of connections in the insurance marketplace
• Losing employees to poor coverage options

Payor

In most cases, a payor is the insurance carrier. They come into the action after a workers’ compensation claim has been filed. A payor’s job is to ensure that the injury is paid for and appropriately treated. They are also responsible for the final processing of the workers’ comp claim and confirming that the correct health services are provided for the injured worker.

Pros of having a good payor:

• Saves you money on injury care
• Assists in the various stages of a workers’ comp claim process
• Allows your employee to quickly receive the right treatment

Risks of not using a payor:

• Having to pay out-of-pocket for injury care
• Not correctly processing the insurance claim, potentially leading to a lawsuit/denied claim
• Prolonging employee injury care, keeping the injured employee out of work longer

Use this information to make sure that your company is working with a broker and payor that will best benefit you and your employees.