Assigned Risk Adjustment Program


Assigned Risk Adjustment Program – (ARAP)


Another reason you should carefully manage your Workers Compensation Insurance Program and Employee work related injuries.


A Workers Compensation Insurance Policy is unlike other insurance policies, in that it acts more like a finance mechanism than an insurance policy. Insurance Companies don’t pay for Work Related Injuries, Employers do!


The ARAP is just one more surprise lurking in the shadows of your Experience Rating Modification Worksheet that you had better understand before dismissing the affect of mismanaging your Workers’ Compensation Program.


The ARAP modification is applied after the Experience Modification and does not replace it. Salt in the wound to Employers that are forced out of the Voluntary Market, the ARAP can add an additional 49% to the cost of your Workers’ Compensation Insurance Premium.  


Read more about the Assigned Risk Adjustment Program in NCCI’s article Did You Know….


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