Work Comp Schedule Rating Factor Highly Negotiable Before Start of Policy
Search For The Work Comp Schedule Rating Factor. Why do we want to search for it? Because your company may be leaving negotiable premiums on the table, so to speak. Ok, Workers Comp policy wonks, this article was produced as a generic article as there are many deviations to Schedule Rating Factor throughout the states.
What Is the Schedule Rating Factor? Let’s find it first. Get our your Workers Comp policy. You know, the thing the agent sent you that you filed away at the start of your policy. I will wait. Hmmmmm…….hhhhhmmmmm………hhmmmmm……hhhhmmmmmm. Ok, so you found your Workers Comp policy. If you found it quickly, you are ahead of the game.
The first page of the policy after the agent’s generic cover letter starts the Declarations Page(s). The parts of any policy – even non-workers comp ones–have DICEE for any acronym.
The five parts are:
- Declarations
- Inclusions
- Conditions
- Exclusions
- Endorsements
Let us stay with the first one. I actually produced that list to give anyone that was slow on locating the policy a little more time. OK, now to the Dec Page.
Do you have your highlighter? – #1 Best Policy Review Tool, well get it out.
Now, start going down the right side of the Declarations Page. Do you see where you have your Classification Codes, Rates, Etc. Keep going down the page until you see Schedule Rating Factor . It is almost at the bottom.
What is your Work Comp Schedule Rating Factor? Did you know that it was negotiable at the START of the policy. You are too late now. Hey, do not look at me. I could have helped you with this at the renewal. Well, you can try to negotiate it on your next policy, or call or email me BEFORE your next policy renews.
The Schedule Rating Factor can swing policies 25% Debit (not good) or 25% Credit (very good). Where is this secret document that covers how these are based? The Rating Bureaus or if you follow this link, I listed some generic ones in a previous article.
Also, I include some of the terms in most of my presentation slides. Search for the word “presentations” in the box at the top right of any page. You will see Presentation Slides on the top search result.
All of the considerations are safety-related. Usually, the first one on the list is Housekeeping. Imagine, a clean workplace is a safe workplace. The Factor is an arbitrary factor between an employer and insurance carrier.
Why did I bring this up today? A company (still litigated, so no names here) just found out in Federal Court that the Rating Factor cements itself to the policy one you sign off on it. No matter what happens later on in your policy year, usually nothing can change your Work Comp Schedule Rating Factor.
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