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Five Amazing Ways That Workers Comp Insurance Is Unique


Workers Comp Insurance Is Unto Itself

Workers Comp Insurance is now one of the more maligned insurance lines.  Other than the Affordable Care Act, much negativity spread quickly throughout the press.

concept of workers comp insurance Hand Watering Plant Graphic

Many employers consider WC as a tax of sorts.   Some employers just write the check and let it roll on.     Let us look at Five Ways That WC is so unique.   Please remember that there are many excpetions to the rule.  The references here are to most states, not all states.

  1. WC does not appear on any paycheck stub,  IRS Form 1099, or on any statement that an employee or subcontractor receives from the employer or contractor.   (Exception – Washington)    Workers Comp  remains a purely employer-based variable cost insurance.    Even health insurance premiums now appear on W2’s.
  2. Two rating bureaus set the rates for most of the states.  NCCI and WCIRB are the two main rating bureaus that cover a very large portion of the states.  However, the insurance carriers can deviate from those rates very easily.
  3. Workers Comp insurance provides benefits as a second-party insurance.   The system does not provide first party insurance such as homeowners or automobile coverages.   The injured workers receives benefits as a second party to the employer.

    Hand Presenting Health Workers Comp Insurance Icon
  4. States oversee every aspect of paying benefits.   The enormous amount of forms that states approve for files has been the bane of many adjusters.
  5. Overall, no two states systems function the same.  Similaries do exist but WC is not a coookie cutter type insurance from state to state.
  6. Bonus – Most insurance lines will exist long  into the future.   Workers comp insurance may not exist in its current form much longer.  I wrote Death of Worker Comp many years ago.  The same factors are still in play.  Even the pundits that thought I was crazy are now starting to agree that everything may change soon.   The Feds are even starting to look at some type of national regulation.

The list could go on for pages and pages.  If you see s major one that I missed, please let me know in the comment section.

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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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