Most Workers Comp E-Mods And Loss Runs Misconceptions
The Workers Comp E-Mods and Loss Runs misconceptions that we have seen are:
Only the open claims make a difference on the E-Mod – any claims opened within certain policy periods affect the E-Mod no matter whether they are closed or open on your Workers Comp loss runs. (See the previous post on Experience Periods)
- The claims for last year will affect the E-Mod – Your Experience Period does not include the claims from the last year. For example, if your policy is renewing on 1/1/08, then the claims for 1/1/04 – 12/31/06 will be counted, BUT NOT THE TOTAL INCURRED FIGURE FOR 12/31/06 or 12/31/07. See our previous posting on Total Incurred. The Unit Stat Date is critical.
- I only need a loss run yearly – For better control of your Workers Comp Costs, you should have online access to your reserves and the ability to run a loss run on demand. Your insurance carrier should be supplying loss runs at least quarterly. Online access is the best way to look at loss runs. Check with your Work Comp insurance carrier’s IT department to see if you are allowed online access. Most carriers have the service available for free.
- Worst of ALL – I cannot control what reserves are on a claim – Communication with the Workers Comp adjuster will always help keep reserves at a reasonable amount. See our previous blog on the Six Ways to Cut Workers Comp Costs. Doing those five things and letting your adjuster know you are doing them will help greatly.
- I cannot tell if the total incurred or reserves are out of line – If you feel you are in over your head, then consult with a reserving expert. We negotiate reserves with insurance companies and third party administrators daily.
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