Key takeaways:
Most employers renew their work comp policy at the same time every year, pay the bill, and hope nothing goes wrong. That approach works – until it doesn’t.
Few lines of insurance respond to your decisions the way work comp does. When you take action to prevent injuries, it helps lower your e-mod and control your premium. But getting there requires a real working relationship between you, your agent, and your carrier.
In this episode of the WorkSAFE Podcast, John Mitchell, Assistant Vice President of Sales at MEM, and Richard Ollis, CEO of Ollis/Akers/Arney Insurance & Business Advisors, walked through what that relationship looks like when it’s working – and what employers leave on the table when it isn’t.
Work comp is the one line of insurance that rewards your effort
“Workers compensation is certainly a statutory requirement, but it’s far more than just a policy to protect you if someone’s injured,” Ollis said. “It’s the one insurance that is actually multiplied by a factor based on your experience. You can literally reduce costs by reducing injuries in your workplace.”
That experience modification factor, or e-mod, is a direct reflection of your claims history compared to similar businesses in your industry.
A 1.0 e-mod means you’re average. Below 1.0, you’re paying less than average. Above 1.0, you’re paying more. On a $200,000 base premium, the difference between a 0.85 and a 1.15 e-mod is roughly $60,000 per year.
Lower injury rates come from safety programs, injury prevention practices, and the kind of planning that only happens when your agent and carrier are engaged with your business year-round, not just at renewal.
📍 Read next: How Your Workers Compensation Premium Is Calculated >
When an employee is injured, the claim cost is only part of what you absorb. Add temporary replacement, retraining, lost productivity, and time spent managing the situation – all before any legal exposure enters the picture. Your agent’s and carrier’s job is to help you understand the holistic return on safety investments.
What a real agent-carrier partnership looks like
Most employers interact with their agent at renewal and call the carrier only if something goes wrong. But with an active, three-sided relationship, the results are different.
“I look at it as a three-legged stool,” explained Ollis. “The carrier, the agency, and the client work together to make sure there’s a well-defined process in the event that someone is injured. It’s silent and behind the scenes until you need the process to work for you.”
“Hopefully, to that policyholder, it seems almost invisible,” Mitchell agreed. “We’re aligned and collaborative, so they just feel like there’s really one team. We’re having real discussions, and we’re really listening to each other to find real solutions that are actually going to benefit the employer.”
That alignment starts with both the agent and the carrier understanding your business – not just your payroll and classification codes, but your operations, hazards, and claims history.
“Both the carrier and the agency need to understand that business, which most of the time means some type of physical visit and walkthrough of their facility,” Ollis said.
That deep understanding is core to MEM’s mission. Our Safety and Risk Consultants conduct on-site assessments, and the audit, claims, and legal teams work in-house. The people on your account are connected to each other.
If an injury occurs, the process should already be in place
Don’t wait for an injury to understand your carrier’s claim process.
Knowing the process in advance leads to a smoother experience than figuring it out under pressure. MEM policyholders can download the Claims Management Kit, which walks through all the steps to follow after an injury.
⏬ Download: MEM Claims Management Kit >
Depending on your state’s laws, you may have the right to direct medical care or recommend in-network providers to an injured worker.
“That is a real advantage,” Ollis said. “You can get them to an occupational specialist that specializes in workplace injuries so that the individual can get the care that they need, and it also puts them on the right track for rehabilitation.”
MEM’s NurseAid line gives injured workers access to a registered nurse 24/7, with immediate care guidance and coordination. Communicating the process and phone number with employees is part of the plan.
Policyholders can request free NurseAid employee education materials, including posters for break rooms and wallet cards for distributed teams.
Using loss trend analysis to lower your long-term costs
Loss trend analysis is a systematic review of your claims history to identify patterns before they become expensive problems. Most employers assume this happens behind the scenes at the actuarial level. It does, but it’s also an exercise your agent and carrier can do with you.
“When we do a loss trend analysis together with MEM, we’re looking at all the previous claims for trends,” Ollis said. “Sometimes we find that lifting may be an issue for that particular business, and so we’ll put in safe lifting training. It can also sometimes identify that a piece of machinery needs to be replaced or upgraded because we’re having injuries associated with it.”
Mitchell connected it back to premium. “We can look at how those trends might positively impact them, from a dollar perspective, in lowering their mod if we’re carrying out some of this planning together.”
Employers can use loss trend analysis to inform safety investments and claims management strategies. MEM policyholders can apply for safety grants to help fund equipment upgrades to address the hazards identified during loss reviews.
📍 Read next: 4 Proven Ways to Reduce Your Workers Compensation Costs >
Questions to ask your agent and carrier
Most employers don’t ask much of the people managing their policy. These questions will tell you quickly whether your relationships are working.
| Ask your agent | Ask your carrier |
| How can we get ahead of injuries before they occur? | Who is my team, and how do I reach them? |
| What are my rights for directing or recommending medical care if an employee is injured? | What does your claims process look like, step by step? |
| Are you and the carrier actively collaborating on my account: Loss reviews, safety planning, and e-mod management? | Can we walk through my loss history together and identify trends? |
| Are your recommendations specific to my business, or a standard package? | What programs and services do you offer that I should take advantage of? |
| How are you different from other carriers? |
📍 Read next: 6 Questions to Ask Your Insurance Agent About Work Comp >
Price gets you a policy. Value gets you a team.
Both Mitchell and Ollis have seen the same pattern: An employer chooses the cheapest carrier, then finds out what wasn’t included.
“Sometimes when you buy a product based on cheap price, it’s a short-term type of pricing model,” Ollis said. “What we really advise our clients to look at is the long-term – not only price, but value. In work comp, your safety record and your claims experience actually determine what your future costs are going to be.”
A low-price carrier often means no assigned team, no contact after an injury, and no safety planning. The premium looks right in year one, but the e-mod tells a different story over time.
“I think it can look like a lack of support; not knowing who to contact,” Mitchell said. “When we have that great agent-carrier partnership with them, the customer can feel like they’re finding that right mix of value. They’re understanding the value they’re getting for the price that they’re being charged.”
📍 Read next: How to Measure the Total Value of a Workers Compensation Policy >
Premium vs. partnership: The people behind your policy matter
Your policy covers what’s required. Your partnership with your agent and carrier fuels everything else:
- Preventing injuries before they become claims
- Getting injured workers the right care on day one
- Setting concrete cost control strategies that improve your bottom line over time
That’s what the right agent and carrier deliver.
Want to experience work comp that goes beyond the policy? Find a MEM agent near you.
Frequently asked questions: The agent-carrier relationship
How often should I be in contact with my agent and carrier outside of renewal?
Ideally, your agent and carrier should be engaged with your business year-round, not just at renewal. Regular touchpoints for loss trend reviews, safety planning, and e-mod management are signs of a partnership that’s actively working for you rather than a transactional relationship.
What is loss trend analysis and how can it help my business?
Loss trend analysis is a review of your claims history to identify recurring patterns – like a high rate of lifting injuries or equipment-related incidents – before they become more expensive problems. Your agent and carrier can conduct this with you and use the findings to guide safety investments and claims management strategies.
What should I do immediately if an employee is injured?
Having a plan before an injury occurs is the most important step. Know your carrier’s claims process, understand your state’s laws on directing or recommending medical care, and ensure employees know how to reach your carrier’s nurse triage line. MEM policyholders can download the Claims Management Kit for a step-by-step guide.
Do I have the right to choose where an injured worker gets medical care?
It depends on your state’s laws. Some states give employers the right to direct medical care or recommend in-network providers; others do not. Ask your agent what your rights are in your state, and make sure the process is documented and communicated to employees before an injury occurs.
What’s the difference between a carrier that offers value and one that just offers a low rate?
A low-rate carrier may cost less at renewal but deliver less when you need support – no assigned team, no contact after an injury, no proactive safety planning. A value-focused carrier invests in your business year-round through safety services, claims expertise, and partnerships that help control your long-term costs, not just your current premium.
What services should I expect from a workers compensation carrier beyond the policy itself?
Look for a carrier that offers on-site safety consultations, a defined claims process with an assigned team, nurse triage, and loss trend analysis. MEM also offers safety grants, in-house legal and audit services.
How do I know if my agent is the right fit for my business?
A strong agent walks your facility, understands your specific hazards, and collaborates actively with your carrier on loss reviews and safety planning. If your agent only contacts you at renewal or can’t answer basic questions about your state’s work comp laws, it may be worth exploring other options.