The Assigned Risk Pool – Very Expensive Insurance
My Company is in the Assigned Risk Pool. Are we paying that much extra, and if we are, how do we get out of it ASAP?
We currently have quite a few employer clients that have asked for us to help get them out of the Assigned Risk Pool. The Workers Comp Assigned Risk Pool is where the State chooses a carrier for an employer as there was no coverage for them in the voluntary market. The insurance company must cover the risk. The insurer charges a HUGE rate over the voluntary market. Who could blame them, as this is “take them as you find them” insurance coverage?
A certain state’s advisory Workers Compensation insurance rate for the Administrative/Clerical positions (Classification Code 8810) is 60% higher in the Assigned Risk Pool than in the regular Workers Comp voluntary market. As you can see, you are paying a much higher rate when in the Pool.
What is the quickest way to get out of the Assigned Risk Pool? This is a much-debated point. The most obvious one is a Safety Program. Keeping losses from happening will do the most for your E-Mod and Workers Comp insurance rates. However, there is a one year lag between your current safety efforts and the E-Mod you have now. Safety programs do take time to show in your insurance premiums.
Reviewing your loss runs is very important. They need to be reviewed long before your Uni-Stat date and any corrections made. There are quite a few prior posts on reviewing your loss runs. If you at any time feel in over your head in reviewing and/or negotiating reserves with your Work Comp claims adjuster, please call in an expert. These reviews can make or break a Workers Comp program. Do not call the Workers Comp adjuster up and say something like – “My reserves are too high. I am paying too much in premium.” Be specific to what claims are over-reserved in your opinion and why.
The other ones are filing a timely report of injury, referral to a good medical treatment network, having a great return to work program, and employee treatment. These will bring your E-Mod and Workers Comp premiums down quickly.
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