What Slows Down Retail Stores Submissions - and How to Fix It

Common Submission Delays and Their Solutions

Retail store submissions can be slowed down by a variety of issues, from missing documentation to unclear descriptions of operations. These issues often arise during the intake process and can delay underwriting and binding. Identifying and addressing these issues early can save time and improve the submission process for your agency.

This article outlines the most common causes of delays in retail store submissions and provides practical fixes for each, helping you streamline your workflow and avoid unnecessary holdups. From incomplete payroll data to misclassified operations, these fixes are actionable and specific to the retail niche.

Missing or Incomplete Documentation

One of the most frequent causes of submission delays is missing or incomplete documentation. Retail stores often require detailed information about their operations, including payroll records, business structure, and safety protocols. When this information is missing, underwriters are forced to pause the submission until they can clarify or request the missing data.

• Solution: Ensure that all required documents are collected before starting the submission process. This includes payroll data, business licenses, and any relevant safety certifications. If payroll data is missing, reach out to the client to clarify what is needed and assist them in gathering the information. Use templates or checklists to make sure nothing is overlooked.

Vague or Incomplete Descriptions of Operations

Many retail stores operate in a way that is not immediately obvious from a simple description. A vague or incomplete description can lead to misclassification and delays in the underwriting process. Underwriters rely on clear operational details to determine the correct classification and risk profile for the business.

• Solution: Ask the client detailed questions about their operations. This includes the number of employees, the nature of the work performed, and any unique aspects of their business. For example, a retail store might also offer repair services or have a warehouse component, which could affect the class code and pricing. If possible, visit the location or request photos and floor plans to better understand the environment.

Incorrect or Incomplete Payroll Splits

Payroll splits are essential for accurate premium calculation. An incorrect or incomplete payroll split can lead to underwriting delays and mispricing. Retail stores often have a mix of part-time, full-time, and seasonal employees, and failing to break down the payroll accurately can result in a submission being rejected or delayed.

• Solution: Review the payroll data carefully and ensure that it is broken down by employee type and job function. If the payroll data is not available, work with the client to estimate the splits based on the number of hours worked and job roles. Provide clear guidance on what data is needed to complete the submission accurately. In cases where the payroll data is complex, consider using a third-party payroll reporting tool or working with the client’s HR team to ensure accuracy.

Inappropriate Class Code Selection

Using the wrong class code can result in delays and mispricing. Some states have their own classification system for workers' compensation, and the codes can vary significantly between states like California and New York and the NCCI states. For example, California uses the WCIRB classification system. A mismatch in the class code can result in a submission being returned for correction.

• Solution: Work with the client to understand their operations and consult the appropriate rating bureau for the state in question. For example, California uses the WCIRB and New York the NYCIRB. Encourage the client to provide detailed information about their business to help determine the correct class code. If you're unsure, consider reaching out to the rating bureau directly for guidance or referring to our class code resources.

Failure to Address Owner Inclusion

Owner inclusion is a critical consideration in workers' compensation. Failing to address whether the owner is included in the coverage can lead to delays and additional underwriting questions. Underwriters need to know whether the owner is included in the policy and what their role is in the business to properly assess the risk and determine the correct premium.

• Solution: Ask the client whether the owner is included in the coverage and document this clearly in the submission. If the owner is included, ensure that their job function and hours are accurately described to avoid any underwriting complications. Make it a standard part of your intake process to ask about owner inclusion and document it in the submission to avoid unnecessary delays.

Incomplete Risk Profile Description

A complete risk profile is essential for underwriters to assess the submission accurately. An incomplete or vague risk profile can lead to delays and additional requests for information. Retail stores often have specific risk factors, such as high foot traffic, potential for slips and falls, or inventory handling risks, that need to be clearly communicated in the submission.

• Solution: Gather detailed information about the client's risk profile, including safety protocols, injury history, and any unique aspects of their business. For example, a retail store might have a high foot traffic area or a warehouse component that requires additional coverage considerations. Include details about the client’s loss history, if any, and any safety measures in place, such as slip-resistant flooring or employee training programs.

Next Steps for Your Agency

By addressing these common issues, your agency can streamline the submission process for retail store clients and reduce delays. Use the solutions outlined above to ensure that your submissions are complete, accurate, and ready for underwriting. A well-structured submission not only speeds up the process but also improves the chances of approval and helps avoid costly revisions.

For more information on workers' compensation for retail stores, visit our workers' compensation page. To start placing your submissions to several carriers and specialty markets, join Cennairus.