What is a carrier consent-to-rate endorsement and when is it needed?

A consent-to-rate endorsement allows a carrier to charge a premium that deviates from the filed rate in a state where rates are regulated. In the tower contractor space, this comes up in two situations: (1) A standard market carrier files rates that do not contemplate tower work exposure, and the actual risk requires a higher rate than the filed rate supports. The consent-to-rate allows charging more. (2) A specialty carrier entering a new state may need rate flexibility before completing the state filing process. For tower contractors, consent-to-rate is more commonly encountered on workers compensation in states with strict rate regulation. If the filed rate for class code 7601 does not adequately price the risk for a contractor with poor loss history, the carrier may use consent-to-rate to charge a higher premium. As a buyer, seeing a consent-to-rate endorsement means your rate is outside the normal filed rate structure. This is not inherently negative, as it may simply reflect the specialty nature of your risk. However, verify that the deviation is reasonable by comparing quoted premiums across multiple carriers. Consent-to-rate can also be used to your benefit if a carrier wants to offer rates below the filed minimum for a good risk.