How To Negotiate Workers' Comp Collateral Agreements
July 24, 2013, 11:44 AM EDT
Law360, New York (July 24, 2013, 11:44 AM EDT) -- When purchasing, or considering the purchase of, large deductible (LD) workers’ compensation, auto and other policies, insurance companies often require the policyholder to post collateral to secure the risk. This collateral will often be governed by a separate “collateral agreement.” Included below are a few important tips to consider when entering into, and negotiating the terms of, any such collateral agreement:
Make sure to request a copy of the insurer’s proposed collateral agreement early on in the process of negotiating the underlying LD policy. The policyholder should have ample time to review, analyze,...