You’ve probably heard of the workers compensation insurance rating bureau if you’ve recently applied for workers compensation insurance. Each business will get a different rating from the bureau as per their business income earnings and losses. When a business is more likely to have more income coming in each year their rating within the bureau will be increased compared to other businesses.
The ratings will vary with each individual company and is calculated by doing an analyze of a three year time-frame of your business that doesn’t include the current year. Within this analyze they will calculate various areas of your business including your payroll and your losses to determine the amount that you will be paying for your workers compensation.
When you have a time-frame where you are earning more income and loosing less you could see that your workers compensation is increasing. It can be very hard to prevent this increase especially if you have several employees earning a fair amount of money each year. The more money your employees make the higher the workers compensation will be. If an employee requires having workers compensation due to an injury at the workplace they will earn at least two thirds of their income while they are not working.
You could see that for a three year time-frame your compensation rating varies which is why an analyze is completed for a three year time-frame instead of doing it each and every year.
Make sure that you begin the process of review at least six months in advance of your policy period end date. You want to do this so that you can be covered fully for your next policy period and no delays occur. Also doing it six months before the end of your policy period lets you prepare yourself for the next period of your policy in advance.
When your policy has been made available by the Bureau make sure that you review right away to ensure that everything is correct. If there are errors get them fixed right away so your next policy period is not false.
You want to compare your data with what the Bureau has to ensure everything is in proper order. You will quickly discover that the information may not be correct so with having six months in advance you are giving yourself tons of time to correct everything.
The workers compensation insurance rating bureau does make mistakes every now and then like everyone else, so ensure you double check all the information and give yourself tons of time to correct things to prevent any unwanted stress.
