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Workers Comp Rates When Will They Go Down – Readers Question


Workers Comp Rates Go Down Slowly – Be Patient

A reader poses a great question on Workers Comp rates.

Businessman In Shock After Looking At Their Watches Workers Comp Rates Sitting On Park Chair

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.
Diagram workers comp Rates Go Down Graphic

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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James J Moore - Workers Comp Expert

Raleigh, NC, United States

About The Author...

James founded a Workers’ Compensation consulting firm, J&L Risk Management Consultants, Inc. in 1996. J&L’s mission is to reduce our clients’ Workers Compensation premiums by using time-tested techniques. J&L’s claims, premium, reserve and Experience Mod reviews have saved employers over $9.8 million in earned premiums over the last three years. J&L has saved numerous companies from bankruptcy proceedings as a result of insurance overpayments.

James has over 27 years of experience in insurance claims, audit, and underwriting, specializing in Workers’ Compensation. He has supervised, and managed the administration of Workers’ Compensation claims, and underwriting in over 45 states. His professional experience includes being the Director of Risk Management for the North Carolina School Boards Association. He created a very successful Workers’ Compensation Injury Rehabilitation Unit for school personnel.

James’s educational background, which centered on computer technology, culminated in earning a Masters of Business Administration (MBA); an Associate in Claims designation (AIC); and an Associate in Risk Management designation (ARM). He is a Chartered Financial Consultant (ChFC) and a licensed financial advisor. The NC Department of Insurance has certified him as an insurance instructor. He also possesses a Bachelors’ Degree in Actuarial Science.

LexisNexis has twice recognized his blog as one of the Top 25 Blogs on Workers’ Compensation. J&L has been listed in AM Best’s Preferred Providers Directory for Insurance Experts – Workers Compensation for over eight years. He recently won the prestigious Baucom Shine Lifetime Achievement Award for his volunteer contributions to the area of risk management and safety. James was recently named as an instructor for the prestigious Insurance Academy.

James is on the Board of Directors and Treasurer of the North Carolina Mid-State Safety Council. He has published two manuals on Workers’ Compensation and three different claims processing manuals. He has also written and has been quoted in numerous articles on reducing Workers’ Compensation costs for public and private employers. James publishes a weekly newsletter with 7,000 readers.

He currently possess press credentials and am invited to various national Workers Compensation conferences as a reporter.

James’s articles or interviews on Workers’ Compensation have appeared in the following publications or websites:

  • Risk and Insurance Management Society (RIMS)
  • Entrepreneur Magazine
  • Bloomberg Business News
  • WorkCompCentral.com
  • Claims Magazine
  • Risk & Insurance Magazine
  • Insurance Journal
  • Workers Compensation.com
  • LinkedIn, Twitter, Facebook and other social media sites
  • Various trade publications


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