West Virginia Workers Compensation After The Monopoly
The West Virginia Workers Compensation system has gone through many abrupt changes.
I just returned from a business trip to Mountain State. The West Virginia Workers Compensation system was in turmoil for a few years. West Virginia has just experienced the switch from Brickstreet and the monopolistic system to an open market system. How many employers placed their coverage with another Workers Comp carrier after the start of the open market is unknown. I am sure the number of policyholders that switched will be reported by the newspapers or television stations.
Over 80% of our West Virginia clients have switched or are in the process of switching to another carrier. This number may not be that accurate overall. Most of our clients were not satisfied with their Worker Comp program. That is why they contacted us. The 80% figure may be much lower in the overall market. Travelers and AIG both have arrived in force.
Our recommendation to policyholders that are in a state with a volatile Workers Comp situation is to read all policies; audits; and claims loss runs as they receive them. Workers Comp policies are not that long. You may be surprised at what you find.
Due to the way that policies had to be rated by NCCI, some of our clients had multiple mini-policies that covered as little as two months. It may be a good idea to put your premium charges on a spreadsheet to lessen the confusion. We have found some of the policies difficult to follow and analyze. That is/was no ones fault. When you have to simulate E-Mods with no reliable data, the task is difficult. The NCCI did an admirable job promulgating E-Mods by using other states’ rates as part of the data.
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