Workers Compensation Insurance Rating Bureau

Try to think of the number one item which affects your Workers Compensation coverage premium.

Is it the Insurance Company you’re with? No.

Is it your agent/broker? Maybe – if he or she is knowledgeable about the subject being discussed here.

Is it the California Work Comp industry in general? No.

Is it the industry you’re in? No.

Is it the claims history you have? Could be, but if your claims history is difficult, there are still things which can, and should be done to improve your premium.

For experienced-modified policyholders in California, (generally those paying over $12,000 to $15,000 in premium each year), the number one item which affects your modification, and thus your premium, is your Unit Statistical report. What’s that?

This report is produced by your (current or prior) insurance carrier 18 months after your policy first starts. The insurance carrier is reporting to the WCIRB, (Workers Compensation Insurance Rating Bureau), specific information about your claims, (open claims, closed claims, paid claim amounts and amounts in reserve). Every carrier is required to do this, and to do it 18 months after your policy starts. The carriers must report again after the 30^th month, and again twelve months after that. Even though a long-standing claim can go on for many years, your experience modification is effected only for the initial three years of claims activity for each claim.

In cases where you have been with a carrier that went insolvent, it can be quite difficult to obtain an accurate report. This is truly a situation where choosing a capable carrier has long-term effects for your business.

In any case, as the business owner or other responsible person in your organization, consider the

Unit Stat report like a final exam. This is the key date for your work comp plan. If your agent/broker is not focused on this date and the claims information shown on this report, then you have the wrong representative.

You might ask, why should I care? Others are nodding their heads, I know, I know.
They know how vital it is to take action before the report is filed,
(once filed, no adjustments are allowed).

The next post: the what, why and when of the Unit Stat report.
And what your broker can do, (for you), to improve the report.

Cheers, your work comp wonk.

Uninsured employers need work comp coverage

I doubt whether many readers of this blog are in the position of being an uninsured employer without Workers Compensation coverage. If you are, an article out of San Luis Obispo highlights the perils of being on either side of this problem. The writer, Colin Rigley, describes how the injured employee slipped and incurred injuries, only to find out that the employer had not obtained coverage after buying the business.

The employer has filed for bankruptcy, and is facing a civil lawsuit from the injured employee. He is also likely to have the Department of Industrial relations chasing him to recoup the payments the Uninsured Employers Benefits Trust Fund made to the employee for her treatments.

Employers, the message is clear; Don’t operate this way.
If you do, the risks to you and the injured person can be more than you can imagine.

Cheers, to those who operate properly