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R&R Insurance Blog

Workers Comp Audit Paperwork | New Updates Beginning Jan 1st, 2017

Posted by Debbie Madsen

Once your Workers Compensation policy has expired, you can exppaperwork.jpgect to be contacted by your carrier. You will be receiving either a letter or a phone call, asking for your actual payroll numbers so that they can “true up” your premium.

Despite the importance of the audit process, many policyholders simply ignore this request due to the seemingly cumbersome nature of audit paperwork. Although most carriers handle this situation differently, when this happens the carrier is then forced to arbitrarily assign a final payroll, which is generally not to the policyholders favor.

However, this process will all change on January 1, 2017 when the WCRB (Wisconsin Compensation Rating Bureau) will mandate that every carrier add an endorsement charge to your Workers Compensation policy called “Audit Noncompliance Charge” or ANC. 

The intent of this endorsement is to create uniformity in how carriers arbitrarily assign payroll in the absence of actual payroll data. As of January 1, 2017 the charge will be 2 times your estimated premium. This will be very costly for those policyholders who choose not to return the audit paperwork. Therefore, while it has always been important to complete the audit paperwork, starting January 1st it will now be even more critical.   

For more information on the changes to Workers Compensation policies coming in 2017, contact a Knowledge Broker.

Topics: Workers Compensation, audit, WCRB

Work Comp Rate Change - What You Need to Know

Posted by Jamie Vanderveldt

iStock_36758470_LARGE_work_injury_claim_form.jpgIn July 2016, the new Work Comp rates for policies, effective October 1st, 2016, were released.  Generally speaking, the rates went down by an average of 3.19%, which is great news.

What is catching companies by surprise is the WCRB also increased the Split Point for the 4th year in a row.  The new Split Point is going to be $16,000.

This is causing most Experience Modification Factors (EMR) to increase by 2 to 5 points before any other factors are input, i.e.: Payrolls and Losses.

Do you know what your projected EMR will be for your next renewal?
Do you know what the Spilt Point means and how if affects your EMR?

Please reach out if you would like to learn more about your EMR and how R&R's Professional Services manage this for customers.

Topics: Work Comp, WCRB, EMR