Workers' Compensation Experience Rating Worksheet -
The information on your worksheet is collected from up to 45 months of prior policy data and provided by your insurance company. Although the data has been reviewed, errors do occur.
Pay special attention to the workers compensation classification codes, payroll and losses that have been reported.
When is data reported?
Carriers are required to take a snapshot of your account,
including Claim Payments and Reserves on the "Valuation Date", or 18 months after a policy is issued.
For instance, a policy that begins on 01/01/2009 and ends on 01/01/2010 has a valuation date of 07/01/2010.
Losses from the 2009 policy period will be reported as of 7/1/2010 and help generate the Experience Modification for the 01/01/2011 renewal. The 2011 Experience Mod will also include data from the 2008 and 2007 policy periods.
Why is this date important?
When a claim is first reported to an Insurance Carrier, an Adjuster is assigned to follow up with the injured employee's treatment and recovery, pay the medical bills, handle disability payments, etc. They are required to set aside "reserves" as an estimate of future payments. When a claim is complete and the injured worker returns to work, these "reserves" are often left open and reported as paid losses. Higher losses generate a higher Experience Mod and drive your Work Comp Premiums up! Knowing the valuation date allows you to communicate with adjusters about closing reserves before they are reported erroneously.