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180 Day Window For Workers Comp Reserve Review


180 Day Window – Workers Comp Reserve Timeline

The 180 day window can save your Workers Compensation Program a large amount of $. What is the 180-Day Window?

Picture of Policies Files 180 Day Window on table and Calculator

It is the time that you have to correct your company’s reserves after the close of the policy year. THIS IS VERY IMPORTANT and one of the most confusing areas that employers will come across in their Workers Comp administration.

Please see our old posts on the Total Incurred part of your Experience Mod Rating (E-Mod or Ex-Mod). We will cover Total Incurred again later this week.

The 180-Day Window functions similarly to this example.

  • Policy Period 1/1/07 to 1/1/08
  • Your Unit Stat Date is 06/30/08 – this means that no matter what happens (with a few exceptions) after 06/30/08, your reserves and Total Incurred can never be changed again for the 1/1/09 – 01/01/10 policy period.
  • The 180 Day Window is from 1/1/08 as that is when the policy period ends until 06/30/08, your Unit Stat date
  • During the Window, you can negotiate reserves down, if possible.
  • No more claims can be added to your policy, so you know the claims that will be on your 2009 – 2010 Experience Mod.
  • To negotiate down the reserves, starting less than 90 days (after 4/1/08) before your Unit Stat date will make the task much more difficult.

    Businessman Passing Document 180 Day Window To Businesswoman

How do you avoid having to be concerned with a short Window of Time to negotiate down your reserves?

  • Review all reserves monthly and if something looks awry then contact your Workers Comp claims adjuster. Your insurance carrier should be providing you with a claims listing at least every quarter.
  • Use email as the method of contact due to documentation concerns.
  • Better yet, if you can obtain online access to your Workers Comp claims, then you can review your claims at your convenience.
  • As I have posted previously, do not just call up the Workers Compensation claims staff and tell them your reserves are too high. Make sure you have a basis to question the reserves.

If you feel that you need assistance, please contact a Workers Comp claims expert (such as JandL). You can also look over my previous posts as an aid to negotiating reserves.

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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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