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Workers Comp Policy Changes Can Occur Only One Way? Yes

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How Can Workers Comp Policy Changes Occur? Only One Way – See How

Workers Comp policy changes are a part of having coverage in place.  I have seen over 300+ changes to a policy in one year.  Yet, those changes can occur only one way – or are supposed to change using only one method.

I will revisit this question when I publish Workers Comp quizzes as in the past.

Picture of dice workers comp policy changes
Public Use Wiki License – AlexanderDreyer

 

Workers Comp Policy Changes Starts With DICEE

I have written many articles on the parts of a P&C or Workers Compensation policies.  Let us begin there.

D – Declarations –see this article for more information.

I – Inclusions – synonymous with Insuring Agreements

C- Conditions

E – Exclusions sometimes called Exemptions

E – Endorsements – at the end of your policy

Why are endorsements last on the DICEE list? The answer is that changes to a policy in place can only be changed by endorsements.   Endorsements can be thought of as a place to change the policy.  If you happen to see language changes in the original policy without an endorsement – that is a yellow flag – possibly red flag material. 

I have placed a series of links at the end of this article on Endorsements – why?  Because it is the only way for workers comp policy changes.   Yes, there could be exceptions in a certain state, but those would be rarities.

Workers Comp Policy Changes – Read All Of Your Endorsements

In the old-school days, endorsements were mailed to you or your company.  Now you may receive hundreds of emails changing any of your policies.  Read them carefully whether they are business or personal policies.

Your broker/agent receiving them does not suffice for informing you or your company of the endorsements.  You have to receive them, not a representative of any type.

One beyond-critical issue is that you do not have to sign off on most Endorsements.  Speak up if you receive an Endorsement that you disagree with the new terms immediately.  Why? – An old school insurance term – time is of the essence.

I made the mistake of not reading my homeowner’s endorsement which I caught the following year.  This would have added thousands to my deductible without me realizing the increases.

Always email your agent/broker if you question any Workers Comp policy changes.  Telephoning generates no documentation like an email chain.

Endorsement Articles For Reference

I have written many article on Endorsement and Workers Comp policy changes on these three articles.  Check them out.  Most of the information is still valid.

Forgotten Part of Workers Comp Policies

Endorsements vs. Declarations Page

Mid-Policy Assessments Becoming More Popular

 

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2 Responses

  1. Everything is very open with a very clear description of the challenges. It was really informative. Your site is very helpful. Many thanks for sharing!

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James Moore

Raleigh, NC, United States

About The Author...

James founded a Workers’ Compensation consulting firm, J&L Risk Mgmt 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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