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Workers Compensation Insurance Policy Mistakes – Top 30


Top 30 Insurance Policy Mistakes

These are the list of insurance policy mistakes from rating bureau. I have often heard this phrase from employers “As far as we know, our insurance carriers are reporting everything to NCCI or our State Rating Bureau accurately.” I decided to check and see if insurance carriers are highly accurate in their reporting.

I found a list of the Top 30 Mistakes That Carriers Make When Reporting Information I will list the Top 10 –

Picture of Hand Scratch A Paper Insurance Policy Mistakes Concept
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1. This policy is a duplicate of a policy already on our database.

2. No specific location city must be blank.

3. No specific location zipcode must be blank or zero.

4. No specific location state must be blank.

5. Policy expiration date – [–/–/–] must be greater than the effective date.

6. Policy total estimated standard premium cannot be less than policy minimum premium.

7. Transaction issue date :[–/–/–] must be within range of transmittal letters.

8. Duplicate header records not allowed.

9. Endorsement __________ is not attached

10. Reason code must be zero.

11. Cancellation/Reinstatement transaction ID code is not a valid code

12. Policy not found on the Rating Bureau database.

13. Too many transactions missing.

14. Too many transactions missing- primary name record

15. There are duplicate transactions within the submission.

16. There are duplicate sequential transactions

17. ARAP factor is required for assigned and experience rated.

18. ARAP factor is below the minimum of 1.00 for policy [—-].

19. Transaction type is not approved for electronic reporting

20. Required Endorsement Report not listed.

21. Required Endorsement Items not included

22. Endorsement Record is not valid

23. No location reported for entity [—].

24. Too many transactions without exactly one header record

25. This policy contains USR’s and cannot be canceled or reinstated. Please review.

26. We have received multiple cancellations with different effective dates

27. Multiple state premiums were reported with the same rating date.

28. There are duplicate non-key field change transactions within the submission.

29. Incorrect Endorsement for this policy period.

30. We have not received the original policy for this change transaction.

If you have any questions on these, please email or call me at (800) 813-1386.

While most of these would not necessarily effect the premiums that you might have to pay, #5, #6, #7, and #9 seem to be premium drivers for your Workers Comp policy. We are not saying that insurance companies make mistakes all the time. It is just when they do, it could cost you $$$.

That is why I recommend always checking everything on your Workers Comp policy whether you have an agent or not. Assuming everything is copacetic may be costing your company premiums.

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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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