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Workers Compensation Insurance – Paying 400% Extra


Workers Compensation Insurance Assigned Risk Rates

I recently read a great article on the West Virginia Assigned Risk Pool in the Daily Mail. The article was very accurate on how the Assigned Risk Pool works and the increases in premium for being in the Assigned Risk Pool. The article said the rates were 25% higher than the normal Workers Compensation Insurance market. The Assigned Risk Pool begins on 1/1/09. Removing Brickstreet as the insurer of last resort should help WV’s largest workers compensation carrier.

Icons of Workers Compensation Insurance with black background

In looking over the Assigned Risk rates for states such as Florida and North Carolina, it is obvious the Assigned Risk pool can be much more expensive than employers may realize. I had written a previous post where I compared the rates between the regular and assigned risk premiums. You may wish to use the search box to find the article. What I found previously was astounding to me.


I will revisit a good and quick example for North Carolina [7228 Long Haul Trucking]:

Rates are per $100 of payroll

  • Assigned Risk Rate 19.97
  • Regular Rate 11.08
  • Difference 8.89
  • % Difference 80%
Hand illustrating Workers Compensation Insurance Business Growth Concept

I do realize that some insurers will increase the Regular Rate from the Advisory Loss Costs in the above example. Where else in a tax structure or business cost does it cost 80% more for basically the same supplied product? If your company is in the Assigned Risk pool, it is highly advisable to do everything to get the company out of the pool.


The first step is to find out why your company is in the pool. We have seen a few employers obtain a regular market insurance rate just by exploring the Workers Comp insurance market heavily at the time of the quote. If what you find out does not sound right to you, keep asking for an 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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