Every state requires some level of workers compensation insurance for businesses with employees. The majority of states of non-monopolistic requiring businesses to find and carry their own insurance. A workers comp MGA provides additional benefits to the business beyond a standard insurance agent.
What Is an MGA?
To understand the benefits, it’s important to understand what a workers comp MGA is. An MGA or managing general agent has underwriting privileges granted from the insurance company. They are trusted representatives and carry out many of the same functions as the insurer does including:
- Appointing retail agents
- Binding coverage
- Settling claims
What Are the Benefits?
Because an MGA has underwriting privileges, they act as a wholesaler helping offer specialized insurance coverage options to clients. Often they work with more than one insurance carrier to provide products specific to your business. Their knowledge and expertise can help your business save money, ascertain specific risks and different markets. The agent is up-to-date on the latest requirements in a variety of locales.
Using a workers comp MGA provides your business with a company and agent specializing specifically in workers comp. An MGA caters to a broad range of niche industries and provides a way for small businesses to obtain the must-have insurance. Cover unique risks or obtain find a minimal premium with an MGA.