Why the valuation date in your workers comp policy is the most important date of the year.
Now you may be saying â€śvaluation dateâ€ť?Â Iâ€™ve never heard of that â€“ what is it?
Well the valuation date is day that all your workers comp payroll and claims information for the past three years is sent to your workers comp rating bureau â€“ now that may be the NCCI which is the national bureau used by 32 states or it could be a state bureau like we use in NY and NJâ€¦.. Regardless of what rating bureau is receiving that data, they will take it and develop your experience rating modifier for your next workers comp renewal.Â Since the mod can have such a big impact on the price you pay for workers comp, making sure to verify this underlying data is really important.
Now hereâ€™s the big rub â€“Â the data going into the bureau on the valuation data has a very good chance of being wrong.Â In fact experts agree that about 80% of the time your data will have flaws in it and that means higher premiums.Â The other big problem is that once this data is reported â€“ itâ€™s locked in for your upcoming renewal and you canâ€™t change it until the following year!
This is why the valuation date becomes so important.
Now you may be thinking that youâ€™ve had your mod audited in the past, and got a partial refund â€“ is this the same thing?
No â€“ mod audits are correcting PAST errors.Â What weâ€™re talking about is correcting errors in the source data before they make it into your mod.Â Rather than getting a partial refund a year, or two or three after the fact -wouldnâ€™t it more make sense to prevent that error occurring in the first place?
We think so and thatâ€™s why weâ€™ve added this process to our CompControl360 system.
Want to learn more about how we can help you drive down the cost of workers comp for your business and how our proprietary CompControl360 system works? â€“ give me a call or drop me an email and letâ€™s start a conversation. â€“ Thanks!