Workers Comp Policy Info Should Be Kept Very Handy
The Workers Comp policy info referenced includes:
- Policies
- All policy amendments or endorsements
- Loss Runs – not just not most recent one
- Premium Audits
- Rating Bureau Worksheets
The aforementioned list of information should be retained for at least five years if not longer. These records should be accessible very quickly by the appropriate staff.
Why?
If you decide to call in a consultant – the more records you have kept, the process will be easier and probably less expensive.
Policies
Your company will need your workers comp policy info for:
- Comparison of one year’s quote to the next
- Comparison at time of premium audit
- Shopping your policy including alternative coverages
The policy endorsements should be kept along with each respective policy year. Endorsements can heavily modify your original policy.
Loss Runs
A current loss run that cover the last four to five years seems great but not always. The loss runs that were produced each year enables workers comp consultants to better understand the flow of the reserves. Not all of our competitors examine the loss runs levels as they change during the year.
Premium Audits
Premium audits provide the closing figures for each policy year. No matter what the policy indicates, the workers comp premium audit shows what final premium figures the insurance carrier charged for that respective year. If your company decides to dispute an audit, the more info retained on the past and current premium audit, the better you can follow what the premium auditor did each year.
Rating Bureau Worksheets
The rating bureau sheets indicate not only the Experience Mod, but what total incurred numbers were charged to the policy. The sheets can be invaluable for comparing total incurred numbers to the loss runs. A word of caution – experienced Workers Comp consultants may be your best bet for these comparisons. The comparison can be a complicated task where the numbers may not match as expected.
The overall records retention information can be found in the link to this article. Overall records retention should be longer with the cheap and easy storage costs provided by just a USB thumbdrive with a password.
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