As insurers weigh how much terrorism-related workers compensation exposure they're willing to take on, experts say underwriters are requesting highly specific information from employers.
In particular, comp insurers are asking for “detailed geo-coded information on the number of workers by location ... by hour” to assess how much comp exposure one client might have if a terrorist event happened at one location at various times, said Robert Hartwig, president of the New York-based Insurance Information Institute Inc.
“That's going to help insurers estimate their total potential losses under a variety of terrorism scenarios,” he said. “But more importantly, what that helps insurers do is understand how much potential risk exists and how much risk they can assume” if the federal terrorism backstop expires at the end of the year.
Employers shopping for workers comp insurance should prepare detailed reports of where their employees are located and at what times, said Christine Williams, New York-based managing director at Marsh L.L.C.'s Workers' Compensation Center of Excellence.
For instance, she said companies should detail how many buildings they have on one campus, how many employees work in each building during peak periods and how many typically telecommute or travel for their jobs.
“Provide as much information as you can so that insurers will have the most accurate reflection of what the exposure to any one loss is,” Ms. Williams said.