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Workers Comp Reserve Reduction Plan – Is Yours In Place?


Reserve Reduction Plan And The Unistat Date

I wrote last week on the timing and deadline for having your Workers Compensation reserve reduction plan in place. If your company has not begun with the plan, you are throwing away Workers Compensation Dollars.

Graphic of Calendar Reserve Reduction Plan Unistat Date
(c) 123rf.com

If your renewal date is January 1, you should by now have obtained your company’s or agency’s Workers Compensation loss runs. If you do not have them, you are already running behind.

Remember, you have until 6/30/11 at 11:59 PM, to reduce your Workers Comp reserves which in turn will reduce your E-Mod. That is your goal – to reduce NEXT YEAR’S E-MOD.

You should have a list of claims that you wish to discuss with your adjuster on the reserve levels. A caveat – KNOWING WHICH CLAIMS to discuss is critical. Discussing the wrong claims may cost your company more $. Please do not ask an adjuster to reduce all your reserves by 15%. That will never happen and ruin the working relationship you have with your adjuster.

If you do not know who your Workers Comp adjuster is, then you are falling way behind. Your loss run should indicate the person that is handling each claim.

Business Reserve Reduction Plan Infography

As I have said many times in this blog, if you have online access you are way ahead of the game. Having FULL online access to your claims will save you hours and hours of work on your reserve reduction plan as you can see the status and the reserve levels any time you wish to access them.

The last time I posted on this subject, I received a few questions concerning renewal dates other than 1/1 and the corresponding reserve reduction plan timing. Check out my next post.

If you ever feel you are in over your head or that your carrier is not responding to your request, please contact us. Reserve reductions are part of what we do as a company.

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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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