How to Read Workers Compensation Insurance Ratings

Workers compensation insurance ratings may be used to refer to the methods used by insurance companies to calculate premiums that the employer will be paying.

Workers compensation insurance is filled by employers in accordance with laws of the state they are in and the type of employees they have. The insurer you have chosen will demand your employee’s payroll reports and reports of previous accidents in order to determine your policy. You will be required to fill out application forms and pay the policy fee.

Insurance Ratings

Each insurance company will have its own workers compensation insurance ratings. This means that you will have to understand how the insurance company arrives at its rating and determine whether it is reasonable for your company. Insurance ratings can be calculated using dividend plans, retrospective ratings or prospective ratings.

How to Read the Insurance Ratings

Ratings for workers insurance are calculated basing on the employee’s type of work and the classified rates provided by the Workers Compensation Insurance rating Bureau. To read the ratings, you have to be familiar with the classification codes used and their corresponding rates. The policy is only completed after the insurer audits the payroll records from the employer.

 

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