Workers Compensation changes you should know about!



The National Council on Compensation Insurance is making changes to their rating plan that will take effect for Michigan on January 1st, 2013.  These changes could have a significant effect on policy holders as the new calculation is applied to your policy.

The NCCI’s changes to the Experience Rating Plan relate to how your loss experience will effect your premiums.  Workers Compensation policies use a “split point” system to give heavier weight to the frequency of losses rather than severity.  In essence, losses have been capped to keep larger claims from impacting your premium.  This change will double the maximum loss value threshold for the impact of a single claim to your workers compensation policy and will work retroactively on your current history.

Due to inflation these adjustments to the threshold should have taken place every couple years but the NCCI has decided to make one significant change to make the correction.  The last time these factors were changed was 1991.

If your Workers Compensation policy has had any claims over the past 5 years you may see an increase to your premium.  Did your agent discuss the impacts that unmanaged claims have on your premiums?   If you would like to learn more about these changes and discuss the tools that you can use to avoid having them affect your business moving forward please contact us 248-853-0930.


“Your Future is Our Focus”

Contributed by Chris Beardslee

Allied Insurance Account Executive since 2010

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Allied Insurance Managers's Bio

Headquartered in Rochester Hills, Mich., Allied Insurance Managers is one of the largest, privately-owned, independent insurance agencies in Michigan.