Alphabet Soup

August 27, 2010

Have you ever wondered what these insurance code names mean?

RTW This Workers’ Compensation term is an acronym for “return-to-work. “ Next to a comprehensive accident prevention program, a solid RTW program is the surest route to disciplined cost management and improved chances for recovery following the occurrence of an injury.

E&O If human beings were perfect, there would be no need for Errors & Omissions insurance. All professional services firms, including marketing services, web hosts, architects, accountants, lawyers and real estate agents should purchase E&O insurance.

Experience Mod This term has also been gifted to us by Workers’ Compensation Insurance. Ratings bureaus derive the Experience Mod for an employer by comparing past losses to "average" losses of other employers in that state and in the same business, after adjusting for size. A rising Experience Mod equates with a rising workers’ compensation insurance premium. In keeping with the baseball season, it is like an ERA and not like a batting average.

E&S Companies that issue Excess & Surplus lines of insurance, unlike admitted carriers, have not been licensed to carry specific lines of insurance in a particular state. However, they are still allowed to conduct business in that state. E&S carriers often fill the breach when admitted carriers have elected not to cover the insured’s risk management needs.

EE01 Another E? We once knew a guy who lived in Apartment 4 E, or, “E as in excellent,” he liked to say. In any case, this is a government form that requires certain employers to provide a count of their employees by job category, ethnicity, race and gender.

Xchange This unique online collaboration tool puts information about risk management and insurance programs in an easily recognizable and accessible format. KMRD Xchange gives clients unprecedented 24/7 access and control.

KMRD For more Risk Management and Insurance Terms, visit the KMRD website at http://www.kmrdpartners.com/RiskandInsuranceterms.php Our Client Services team is committed to removing the mystery from insurance coverages to help our clients make well informed choices.

In keeping with our Casual Fridays theme, this information is not copyright protected. Want to join the conversation? We’d love to hear from you.

About KMRD Partners, Inc. – KMRD Partners, Inc. is a full service Property & Casualty broker serving the commercial property and casualty insurance market from offices in the Philadelphia, PA region.  Their mission statement, “Making a difference by Managing the Cost of Risk”, is a unique approach that focuses not just on insurance placement, but coverage expertise, service accountability, client education and risk management.

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