Thursday, July 31, 2014

New York Rating Bureau Gets Some Unwelcome Publicity

The New York Workers Compensation rating bureau, known as the New York State Compensation Insurance Rating Board, is getting some bad publicity and maybe some regulatory review after a rating decision causes a Brooklyn factor to shut down.

This kind of economic shock to an employer isn't all that uncommon--we here at Advanced Insurance Management get calls and emails on a regular basis from employers facing similar price shocks after decisions by an insurance company or the rating bureau (NCCI in most other states, but some states like New York, California, and a few others operate their own).

This article illustrates not only the often unappreciated danger employers can face from these sorts of unexpected rate increases, it also carries another lesson. This Brooklyn factory started this whole problem by requesting a review by the NY board, after their insurance agent said they could be eligible for a lower rate.

That blew up in the faces of this small factory, and drives home the point that you really need to make sure you are working with knowledgeable experts when it comes to things like Workers Comp classifications, audits, and experience mods. Otherwise, like this unfortunate Brooklyn company, you might inadvertently begin something you ultimately regret.

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