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Work Comp Schedule Rating Factor Use It or Lose It @Policy Commences


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.

Paperwork bundles Work Comp Schedule Rating Factor File Folder
Wikimedia Commons – Tony Webster

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:

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.

Negotiable Instrument Act Work Comp Schedule Rating Factor Picture
kn.m.wikipedia.org – Rubiya mercy

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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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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