Assigned Risk Pool Can Be Avoided With Few Techniques

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Assigned Risk Pool – Getting Out Of It Is Possible

The Assigned Risk Pool makes an alternate decision very difficult. The easiest method to remove your company from the Voluntary Risk Market and place your Workers Comp coverage in the general marketplace is to reduce your Experience Modification Factor.

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Your company may likely have a very high E-Mod compared to similar businesses. We have posted many previous articles on how to reduce your E-Mod.

Another way to possibly remove your company from the Assigned Risk Pool is to make sure that your agent has shopped your business in all available markets. We have seen this method remove companies from an Assigned Risk Pool if there are workers comp insurance companies that specialize in, or better understand, the risks involved with your company. Never just assume that you should be in the Risk Pool.

Make sure that your company has the correct Classification Codes assigned to it. Quite often, certain Workers Comp Classification Codes have a high risk associated with them and no insurance company will write the coverage in the voluntary market.

Update – Looking at the alternative insurance markets have become very viable over the last few years.  Agents/brokers usually cannot search the alternative markets.

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One mistake we have seen companies make is to think in the short term with cost reductions. Having a safer company will show up in your Workers Comp insurance in the second year of safe operations and will not be fully realized until the fifth year. We have seen companies switch their focus away from Workers Comp savings strategies, as there seemed to be no effect on their premiums.

There are a few companies that cannot be written in the voluntary marketplace due to the risky nature of the job functions.

Next Up – The Dangers of a Short-Rate Policy

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James Moore

Raleigh, NC, United States

About The Author...

James founded a Workers’ Compensation consulting firm, J&L Risk Mgmt 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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