Without question, the far more important date of the year is six months after your renewal date. If your broker doesn’t know this, or talk about the importance of the Unit Statistical report and the Valuation date, you have the wrong broker.

If you are not experience rated or experience modified now, or ever expect to be, this won’t really apply to you. In California, only those businesses which pay somewhere around $15,000 in annual Workers Compensation premiums are experience modified. And it takes three policy years to become modified.

The California Workers Compensation Insurance Rating Bureau has key information about the Unit Statistical report here: https://wcirbonline.org/wcirb/Employer_Guide/usr.html

If your Experience rating is over 1.00 then become unsettled now if you have never heard the phrase, “Valuation date”.

You know the feeling, or you’ve heard the idea that the California Workers Compensation system is out of control. It sort of is, and sort of isn’t. There are things you can do. The next post will explain the very first thing to do.

Hint; it’s easy. And you can start to get control.

Cheers,

Mike Vrchota

A lonely Nevada road

Sure, the ads can be humorous in their own way, but the issue is serious for business owners who want to stay in business, be profitable, and continue to employ folks in their local community, (which is the desire of most employers).

One step owners can do is take action and consult with an Insurance Broker to dig into their Work Comp plan to look for mistakes or overcharges. In some cases, significant funds have been recovered and positive changes have been made by qualified Brokers.

Recovering funds from previous errors, and making sure your Experience Modification and class codes are exactly where and what they should be may give some business owners the glimmer of light to see their way through challenging times, (like now). The methods and results being referenced can be seen at the Institute of Work Comp professionals, (IWCP), website: www.workcompprofessionals.com

Client Care Insurance is a Certified Work Comp Advisor agency helping California Employers, Human resource managers, (and those who help them), to quit losing money and develop powerful employee relationships for bottom-line improvement. Find a broker with a plan to put money back in your pocket.

Don’t move, improve.

Cheers, your Work Comp Wonk.

Her question is about Agents and Brokers offering Work Comp coverage.

I mentioned that the most common and well-known certification for Property and Casualty agents,

CPCU, requires only one overview class on Workers Compensation.  

So this brings up the question: from whom should you get your Work Comp coverage?

How will you know if the Broker/Agent is experienced in Work Comp?

Considering that many businesses devote more premium dollars to Work Comp coverage than any other coverage line, it becomes more important to consider how businesses obtain their coverage, and from whom.

In the same way that every business is different, every Broker is different.

And, even if a Broker has letters after his or her name, it doesn’t mean that he/she is a good match for your company.

So what do you look for?
Before I mention other things, it’s important to mention that all the knowledge in the world doesn’t help if the person you’re working with isn’t providing integrity and transparency.

Beyond those basic character standards, there is a certain base of knowledge your Agent/Broker should readily display. Without going into detail, I submit the following list as a basic checklist.

Because the California Workers Compensation system is so large and presents, (untold) complexity at every turn, my first suggestion is to work with someone specializing in Workers Compensation coverage. Someone who is even…wonkish about it.

Now whether you have a specialist or not, the broker should have extensive knowledge of how your experience modification is calculated. If you’re not currently modified, he/she should be able to forecast when you will be, and what your mod might be.

He or she should also provide detailed suggestions to get your mod lowered, if it’s been on the high side, (over 1.00). They should know exactly what a Unit statistical report is, when it’s filed, and by whom, (this is the key report your insurance company provides to the Workers Compensation Bureau).

The broker should know how important it is to make certain that you are classified properly, and that your estimated premium is equivalent to the current payroll and operations. If you’re a contractor they should regularly advise you to keep current with all your sub-contractors to make sure you’re receiving valid and complete certificates of insurance.

In addition, they should show a willingness to be your partner as it relates to your premium audit. Your premium audit, (and the resulting audit premium), can become an unwelcome surprise if your broker does not provide meaningful knowledge about how you can prepare for the audit.

Please consider this a short treatment of a substantial subject. To summarize, your agent/broker can be involved in regular steps to lower your premiums, (if they know what steps to take). If you don’t see them involved, then they either don’t know what to do, or they are comfortable just renewing your policy each year. Are you ok with that? Let me know your thoughts.

Cheers, your Work Comp wonk