State Fund Today
A complete submission is the fastest path to an accurate quote. When key details are missing or incorrect, the quote can be delayed, re-rated, or priced higher than it needs to be. Here are five errors we see most often, and simple ways to prevent them.
1. Missing common ownership
When the same person or group owns more than one business, those businesses may need to be written together on the policy. Brokers often submit one entity and leave the others out.
What to do: Ask your client to list every business they have any ownership interests in, the entity type (Corporation, LLC, Partnership, etc.), plus the ownership percentage for each. Include all FEINs. If ownership recently changed, say so in the submission. When ownership changes occur, the WCIRB must be notified.
2. Overlooking independent contractor exposure
If a contractor or sub does not carry their own coverage, that payroll can land back on your client's policy. Leaving it off the application creates a gap that shows up later at audit — usually as a surprise bill.
What to do: Confirm whether the client uses 1099 workers or subs. Ask for certificates of insurance and verify that they have an active license with CSLB. Subs must be both licensed and insured. If certificates are missing, include the payroll in the submission up front.
3. Incomplete loss history
Loss runs that are out of date or missing from a prior carrier slow everything down. Without a full picture, the account can't be rated correctly.
What to do: Send loss runs for the full required period, typically the 4 most recent years (5 for larger accounts) with an exception for those that have been in business for less than 4 years valued within the last 100 days. Include every carrier the client used during that time. If a year had no losses, include the loss run report that shows it.
4. Wrong full-time and part-time counts
Employee counts are often estimated or copied from last year's application. Part-time and seasonal workers are the ones most likely to be missed.
What to do: Pull actual counts from payroll records, not memory. Separate full-time, part-time, and seasonal staff. Note owners and officers, whether they are included or excluded and their job duties.
5 Leaving default pricing in place
Blank or default fields can lead to inaccurate pricing. Every detail you provide works in your client's favor, so be sure to complete fields accurately for the best outcome.
What to do: Review every pre-filled field before you submit. Enter real payroll by class code per location (when the business operates from more than one location). Add anything that supports better pricing, such as safety programs, training, or return-to-work plans. The more info you provide, the more we know, allowing us to more accurately price the quote.
A quick pre-submission check
Before you hit enter, confirm:
- All related entities and FEINs are listed
- Sub and 1099 exposure are documented, with certificates attached and CSLB license numbers provided
- Loss runs are current and cover the full quoting period
- Employee counts come from payroll records
- No default values are left in place
Most re-rates trace back to one of these five items. A few extra minutes at the front end saves days on the back end — and gives your client a number they can count on.