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Workers Comp Large Deductibles And Rating Bureaus


Workers Comp Large Deductibles Still Have E-Mod – Shocker

The Workers Comp Large Deductibles have always been reported to the rating bureaus.

Reader Question – We have a large deductible. Our Company is basically self insured. We have heard this comment often lately as larger employers seek to control their Workers Compensation costs by entering into large deductible arrangements.

Extra effort Workers Comp Large Deductibles work
Wikimedia Commons – Rasheedhrasheed

Self-insuring for Workers Comp can be a way to cut comp costs if done properly. However, when you are insured with a large deductible, the rating bureaus still promulgate your Experience Modification Factor which can be accessed by almost anyone.

A self insured employer will “drop off the radar screen” with the rating bureau. As no insurance carrier is covering the employer, there is no Unit Stat report filed with the rating bureau. Quite a large number of our current clients are shocked when I tell them that I can pull their E-Mod even while they had or have been in a large deductible program. Your company’s E-Mod will not revert to 1.0 if you decide to end your large deductible program. Companies that are fully self insured will not usually have an E-Mod.

Picture Businesswoman Pulling Giant Briefcase with Cash Inside Workers Comp Large Deductibles The Rating Bureaus

Many companies have signed on with a large deductible program thinking their high E-Mod will fade away. We recently had a manufacturing client contact us as they decided to end their large deductible program and go back to the open market with a regular Workers Comp insurance policy. After examining many variables, we had advised them if they ended their large deductible program, they would start with an E-Mod of 1.45.

Our client would have ended up being put into the risk pool with much higher rates then before they began their large deductible program. They decided to stay with the large deductible and we are now working with them to see if they can be fully self insured. Their bottom line savings on becoming self insured even from a large deductible is about 19%.

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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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