Workers Comp Rates Go Down Slowly – Be Patient
A reader poses a great question on Workers Comp rates.
My business had three bad years and then we had a much better year with our Workers Comp accidents. Now that we have had a better year, will our Workers Comp rates go down?
Workers Comp Rates On A Delayed System
Actually, your good Workers Comp accident year will not have any effect on your upcoming E-mod. Workers Comp experience rating runs on a delayed system. If your Workers Comp policy period is 1/1/08 – 1/1/09 then the policies that will affect your E-mod are:
- 1/1/04 -1/1/05
- 1/1/05 – 1/1/06
- 1/1/06 – 1/1/07.
Your great year for 1/1/07 – 1/1/08 will affect your E-Mods for:
- 1/1/09 – 1/1/10
- 1/1/10 – 1/1/11
- 1/1/11 – 1/1/12.
If you keep having great Workers Comp accident years, the E-Mod will decrease in a stair-step fashion. A good safety program should kickstart your E-Mod reduction program. Safety removes risk. Risk affects the E-Mod directly and vice-versa.
The main E-Mod reduction task is to keep your number of claims down for more than just one year. Three good claims years should return your Mod to the levels before you had your spate of bad years.
This blog dedicates itself to informing the public – especially employers – on how to reduce your workers comp rates. Feel free to search the blog for any work comp subject.
You had said that you had bad/great Workers Comp years. Check out the next post for exactly what may look like a good or bad year, but may have the total opposite effect on your E-mod. Workers Comp E-mods sometimes may not be what you had expected to happen.
The Unit Stat date becomes ever important as companies look to reduce their E-Mod. Self insureds do not have to concern themselves with the Unit Stat Date. However, a self insured has to be ever-vigilant to watch their LDF for budgeting purposes.
Follow this link to a Unit Stat Date explanation.
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