Schedule Credits Can Save Big on Premiums
Schedule Credits – discretionary premium adjustment based on underwriters evaluation of special characteristics of a risk not reflected in the E-Mod. The opposite adjustment is schedule debits.
I have seen where the Schedule Credits or Debits can cause a 25% increase or a decrease to an employer’s premium. Most of the credits involve safety issues such as housekeeping, guards in place, etc. The Schedule Credits can offset part of the premium increase caused by a higher E-Mod. Each state has its own specific set of criteria. The rating bureaus will usually have the most comprehensive tables.
For a safety officer, this can be one of the most powerful parts of your employment file. A properly documented list of safety accomplishments and programs should always be presented to the Workers Comp underwriter when a new policy is written each year.
There are credits for such areas as housekeeping, clean work areas, updated safety manual, hearing protection, and other safety considerations.
If you are self insured, presenting the same material to the actuary when an Loss Development Factor (LDF) is being calculated. The safety information can always be a method to lower a schedule debit or increase schedule credits.
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