Workers Comp Audit Stress Reducer
Use It For Your Next Premium Audit

Workers Comp Renewal – Five Ways To Harm Your Insurance Program


A Workers Comp Renewal On January 1 Is A Crowded Road

A Workers Comp renewal on January 1 creates five ways (or more) to harm your WC program.  In my many years working for insurance companies and TPA’s, I have found that employers and their agents start to rush everything through to get their Workers Comp policy ready to renew on 1/1. These five areas are critical to reducing or avoiding an increase in Workers Compensation premiums.

Picture of Workers Comp Renewal With Graphic Insurance Policy On Background

1. Why is your business renewing on 1/1? A large majority of policies renew on 1/1. Moving your renewal date to February 1st means that you are not in the mad rush to renew by the first of the year. This renewal date will let your agent and underwriting department have more time to renew your policy. It is the same as not running an errand during rush hour traffic.

2. There is no need for a rushed reserve review now. Your Experience Modification Factor (Emod or Xmod) was cemented in place many weeks ago. There is no use to try to fix it now as it is too late.

3. It is advisable to not use the same payroll figures from last year. As many businesses have cut back on staff and/or hours over the last few months, it is advisable to use a forecast of lower payrolls. If your company has more payroll than expected, the premium auditor will correct it at the yearly premium audit. This is a careful balancing act as forecasting the payrolls too low will result in a sticker shock at the premium audit.

Picture Panoramic Shot of Crowd Shouting with Hands on Face Workers Comp Renewal January 1

4. Renewing with the same insurance carrier without questioning your agent. Workers Comp insurance carriers change their variables and rating values often. There are very few instances where staying with a certain carrier will benefit an employer. Brand loyalty can sometimes be very expensive in the insurance business.

5. Do you know the name and email addresses of all the Workers Comp adjusters who are working on your claim files? If you do not, your company is throwing money down the drain. The adjusters function just like a financial adviser in any other financial institution. The reserves your adjusters set on the files are the main figures that feed into your E-Mod.

©J&L Risk Management Inc Copyright Notice



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


Get the latest workers' comp news FREE!

This field is for validation purposes and should be left unchanged.