The Assigned Risk Pool Is Not Just For Risky Employers

I have often heard this expression - ABC Company is in the Assigned Risk Pool.  They must have had a high E-Mod or a really bad Workers Comp accident.   Nothing could be further from the truth.  There are many employers with an E-Mod less than .9 (a good risk) and/or  have had no serious claims  that are in the Assigned Risk Pool.   

Often, there are just no Workers Comp insurance carriers that will write a certain type of employer in a certain state at a certain time.  We have seen trucking companies, staffing agencies, and other companies not being underwritten by the regular insurance market.  There is sometimes no rhyme or reason to why  a workers comp insurance market for a certain type of employer dries up almost overnight.    

One of my main concerns about the Assigned Risk Pool  is the overwhelming cost of being in it. The assigned risk rates can be up to 700% more expensive than in the regular insurance market. No matter how safe an employer is, being in the Assigned Risk Pool will result in a much larger insurance budget.   The Assigned Risk Pool is a very necessary evil.  Without it, there may be many companies that could not acquire Workers Compensation coverage for their employees.