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Workers Comp Policy Rules For Changing Classification Codes


Your Workers Comp Policy Rules For Changing Classification Codes

Your Workers Comp policy rules have an interesting yet unknown rule in them.   All states have this rule in one form or another.  The main rule here is the 120 day rule.  The rule is applicable in almost all states with very few exceptions.

Vector of Judge Holding Workers Comp Policy Rules Gavel and Law Book
  • If the Workers Comp insurance carrier changes your classification during the first 120 days, this is allowed.
  • If your carrier does this after 120 days, but before 9 months, then any increase is on a pro-rata %, not 100% of the classification code change.
  • If there is a change in classification codes after nine months, then THERE CAN BE NO RETROACTIVE CHANGE to the current workers compensation policy. The classification codes can only be changed on the renewal policy.

This rule was instituted due to insurance carriers going back and changing the classification codes on policies to generate more funds. Before the 120 day rule, carriers could change policies at will.   If you have had a retroactive or current classification code change, it may be best to contact a Workers Comp premium and Experience Mod expert .

Next Up – Ownership Changes and The Effect on a Workers Comp Policy

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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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