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WC Loss Run Reserve – Public Employers Upcoming Deadline


WC Loss Run Reserve Levels Crucial For Public Employers

Certain organizations need to concentrate on WC Loss Run reserve levels now.   Yesterday, I pointed out that employers with a renewal date of 1/1/14 are wasting time performing loss run reviews.   That is not 100% true as at least your company is beginning the loss run schedule for your 7/1/14 Unit Stat date.

Graphic of WC Loss Run Reserve Business connection

Most governmental and quasi-governmental organizations renew on 7/1/14.  If this is true for your company or organization, you must act now to keep your E-Mod as low as possible.  You have until 12/31/13 as this is when your reserves will peg to your E-Mod for your 7/1/14 renewal.    

The quickest way to find out your reserve levels is by having online access.  Loss runs can be downloaded at will in most systems.  If not, you will need to contact your agent or insurance carrier to obtain a loss run.  Obtaining your loss runs may take some time to accomplish as there can be a delay of up to two weeks.

If you have had multiple WC carriers in the last five years, you will need to obtain a loss run from each of the WC carriers.   Knowing which claims on which to question the reserve levels can be a daunting task.  One can cost their company or governmental organization by actually calling the claims department’s attention to a file that needs an increase in reserves. 

The best way to contact your claims staff is by email.  As I have said in numerous posts on this blog, claim departments do not rush through reserve decreases.  This process takes time as the supervisor, claims manager, and VP may all have to sign off on a reserve decrease.  Larger files usually take weeks to pass from desk to desk.

Picture of WC Loss Run Reserve Hands Presenting Email

Only contact the WC claims departments on certain claims.  Calling up the claims department and complaining that all reserves are too high will likely result in no reserve decreases and may alienate the working relationship that you have had in the past.

If you feel overwhelmed by the reserve reduction review task, then it may be best to wait until the

middle of 2014 to start your reserve and loss run review.  The best time to start is just after your company renews as you will have six months to accomplish this sometimes difficult task.

Most claims offices operate with skeleton crews just before Christmas to after the New Year.   You may find your request to have a reserve lowered for your 1/1/2014 Unit Stat Date will not be accomplished until after the New Year.

There is a formula on this blog of when to do reserve level reviews.

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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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