Is It Really Crunch Time For Your Workers Comp Policy?

I often hear that this is the crunch time for all agents, as there are so many policies renewing on January 1st of every year. That may be true - but is it crunch time for you as the employer? The answer is yes and no.

The "yes" is that if you wish to have your policies reviewed for premium overcharges, as every renewal will result in losing a year of policies that could have been reviewed. This is especially critical if your company has less payroll now than two or three years ago. J&L is able to go back three years in most states in our premium reviews.

The "no" is that if we are performing a reserve review, the end of a policy year has no bearing on how your Workers Compensation reserves affect your premiums. As I have posted very many times in this blog, doing a file review just before your policy ends is a royal waste of your time.

Why do reserves have no effect on your policies at the renewal date? Please check in next time.