Reader Question-When Will Our Rates Go Down?

My business had three bad years and then we had a much better year with our Workers Comp accidents. Now that we have had a better year, will our Workers Comp rates go down?

Actually, your good Workers Comp accident year will not have any effect on your upcoming E-mod. Workers Comp experience rating runs on a delayed system. If your Workers Comp policy period is 1/1/08 - 1/1/09 then the polices that will affect your E-mod are:

• 1/1/04 -1/1/05
• 1/1/05 - 1/1/06
• 1/1/06 - 1/1/07.

Your great year for 1/1/07 - 1/1/08 will affect your E-Mods for:

• 1/1/09 - 1/1/10
• 1/1/10 - 1/1/11
• 1/1/11 - 1/1/12.

If you keep having great Workers Comp accident years, the E-Mod will decrease in a stair-step fashion.

You had said that you had bad/great Workers Comp years. Check out the next post for exactly what may look like a good or bad year, but may have the total opposite effect on your E-mod. Workers Comp E-mods sometimes may not be what you had expected to happen.

Our main website is www.cutcompcosts.com