Insurance brokers can help employers save money and stay compliant with this simple step
The DBL Center is more than just an insurance wholesaler, able to leverage our carrier relationships to secure better premiums and superior coverage for our clients.
Our services extend to back-office management, renewal- and cancellation-tracking, and knowledgeable support that helps brokers identify risk gaps in their clients’ coverage.
With these regular reviews, we often notice discrepancies. As we compare year-over-year employee counts, benefit volumes, and premium across our book of business, we’ve spotted an alarming trend: Many employers don’t update employee salaries with their carriers, even after several years.
For salary-based coverage, including short-term disability in NY (NY DBL) long-term Disability (LTD), and Group Life/AD&D, stale salary data can mean underinsured employees, slower claims adjudication, and frustrated benefits managers. But The DBL Center can help.
Why Salary Updates Matter to Business Owners and the Insured
Premium rates and benefit payouts are often based on employee salaries, especially in the case of short-term disability, long-term disability, and ancillary benefits like Group Life / AD&D.
Incorrect salary data can lead to under- or over-billing. Salary data is just as important as the number of lives in a company when it comes to accurate billing and seamless claims.
Eliminate Surprises
Accurate data prevents premium discrepancies at the time of renewal and eliminates surprises when the bill comes due.
No one likes to overpay for anything. Or worse, receive a bill that’s more than they expected. Accurate salary data means accurate billing and no discrepancies.
Streamline Claims
Accurate salary data also helps ensure the right benefit payout when an employee makes a claim. This reduces employee frustration, especially at a time when they might already be stressed out, not just regarding finances, but about their personal health and the injury or illness they’re dealing with.
Less stress can lead to better health outcomes and a faster return-to-work. Bottom line: Everyone benefits from healthy employees, and better mental health with minimal financial worries can play a key role.
Simplify Administration
Accurate salary data simplifies administration, making reporting and billing seamless. The DBL Center has systems in place to provide brokers with push notifications to track renewals and cancellations. But brokers must provide accurate, timely data to the carriers to minimize hassles when an employee files a claim.
Salaries and Workforces Change
October marked the highest rate of layoffs for US workers in more than 20 years, according to new data published by Reuters. US employers cut more than 150,000 jobs, according to a report from Challenger, Gray & Christmas.
Meanwhile, inflation rates hold relatively steady at just under 3%, which is higher than the U.S. Federal Reserve’s target rate of 2%.
Some employers are offering raises to keep pace with inflation. Meanwhile, some companies have been forced to increase wages. In 2025, 21 states increased their minimum wage, according to data from Paycom.com.
All of this to say, it’s likely that last year’s salaries and head counts have changed, which can substantially change salary-based insurance premiums.
How the DBL Center Can Help
As your back-office staff, The DBL Center can help you ensure your clients are in compliance with up-to-date salary data and the benefits they need. We are your single point-of-contact for statutory and ancillary benefits.
We handle the paperwork, coordinate with carrier representatives, and resolve questions behind the scenes. That means less administrative hassle for you and more time to focus on client relationships and business growth.
Update Salary Data Now
Some carriers capture salary data in real-time, and others at the time of renewal, which typically comes at the end of the year. Take this opportunity as we near the end of the year, to remind your clients to submit current salary data.
Accurate salary data ensures protective benefits keep pace with today’s pay and claims can get paid quickly and accurately.
FAQs
What does it mean if an employer pays insurance premiums?
When an employer pays insurance premiums, the workers do not have paycheck deductions to cover the cost of benefits. Some benefits, like DBL and paid family leave in NY, can be fully funded by the employer or paid on a cost-shared basis between the employer and employee.
What are primary and ancillary benefits?
In American workplaces, health insurance is considered a primary benefit. Any benefits that supplement the health insurance policy, including disability coverage, paid family and medical leave, dental, vision and group life / AD&D are considered ancillary benefits. These may be mandatory, like disability insurance in New York, or offered on a voluntary or cost-shared basis.
Why do employee salary updates matter for insurance coverage?
Salary-based benefits like group life / AD&D, long term disability and STD (short term disability) are calculated as a percentage of an employee’s earnings. If an employer hasn’t updated salary data with the insurance carrier, the employee may receive a lower benefit than expected when they file a claim. Additionally, inaccurate salary data can lead to inaccurate premium rates.
