The Final Workers Comp Answer = 6 months after policy expiration
This is the Final Workers Comp answer for when a policy expires. Last week and yesterday I posted on the importance of June 30th if your Workers Comp policy expires on 12/31 or 1/1. Why is June 30th important for those policies and what date is very important for your Worker Compensation policies?
The Workers Comp Experience Rating Cycle is a double-delayed cycle. One main aspect of the delay is that all of the rating bureaus allow six months for the insurance carrier to change the reserves on your loss run.
When agents and claims staff want to do reviews right before your policy expires, they are seriously wasting your time. Six months after your policy expires is when the Total Incurred (Paid + Reserves) from the Workers Compensation loss runs are calculated for your E-Mod/X-Mod. However, you cannot wait until two weeks before the six month period ends to start working on this project.
You must have a schedule to follow that starts much earlier. It does take some time to review your claim loss runs and then negotiate any type of reserve reductions or file closings.
We have devised our own loss run review schedule for each of our clients.
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