Pricing Programs

LWCC Pricing Programs

LWCC offers policyholders as much flexibility as possible when it comes to paying their premiums. We understand that every business is unique. Therefore, our underwriters have the ability to offer a payment plan that best meets the needs of the policyholder.

LWCC offers a choice of payment plans. Installment plans allow policyholders to pay preset installments based on their estimated annual premiums. Some employers have the option of payroll reporting. Payroll reporting allows premium payments based on actual payroll. Larger policyholders also may be eligible for alternative pricing options such as deductibles and retrospectively rated policies (retros).

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Installment Plans

LWCC’s installment plans allow policyholders to pay their premiums in fixed installments based on estimated annual premium.

Payroll Reporting

Monthly payroll reporting is an alternative method of premium payment that may benefit policyholders whose payroll may vary from month to month. Policyholders make payments every month based on their actual payroll. Since premiums are based on payroll from the previous month, policyholders are actually paying for coverage after receiving it.

To protect LWCC and other policyholders in case some policyholders do not pay their premiums, LWCC collects a security deposit based on the estimated annual premium (may be adjusted at the anniversary date).

Deductibles

Deductibles reduce policyholders’ premiums in return for them assuming added risk. With deductibles, policyholders agree to pay the initial portion of each claim, up to a specified retention amount, in return for a reduced premium. LWCC pays any amounts exceeding the retention amount(s). A manual premium of $250,000 is required to be considered for a deductible program. Each account will be evaluated according to premium size, E-mod over the past five years, hazard group(s), senior management’s policy and support for safety, financial status, safety and loss control programs, prior loss history, estimated expected losses and major changes in business orientation or organization.

Retrospectively Rated Policies (Retros)

Retros provide policyholders with the opportunity to reduce their premiums by establishing a rating formula whose final premium determination is based upon the policyholder’s loss experience for a specified period.

For retros, the amount of premiums due is calculated and paid at different intervals in the life of the policy. These plans determine an insured’s premium after the policy has expired based on the policyholder’s loss experience during the policy period.

Policyholders can potentially realize premium savings if their losses are lower than expected. On the other hand, if loss experience is poorer than expected, premium can exceed that of guaranteed cost methods. The minimum manual premium for the typical retro is $250,000.