You’ve probably heard of the office of workers’ compensation insurance rating if you’ve recently applied for workers’ compensation insurance. Each business will earn a different rating from the bureau based on their business income gains and losses. When a company is more likely to have more revenue each year, its rating within the bureau will increase compared to other companies.

Ratings will vary with each individual company and are calculated by analyzing a three-year time frame of your business that does not include the current year. Within this analysis, they will calculate various areas of your business, including your payroll and losses, to determine the amount you will pay for your workers’ compensation.

When you have a time frame where you earn more income and lose less, you can see your workers’ compensation increasing. It can be very difficult to avoid this increase, especially if you have several employees who make a good amount of money each year. The more money your employees make, the higher their workers’ compensation will be. If an employee requires workers’ compensation due to a workplace injury, he will earn at least two-thirds of his earnings while he is not working.

You may see that over a three-year period, your compensation qualification fluctuates, so an analysis is completed over a three-year period instead of every year.

Be sure to start the review process at least six months before your policy period end date. You want to do this so that you can be fully covered for your next policy period and there won’t be any delays. Plus, doing it six months before the end of your policy period allows you to prepare ahead of time for your next policy period.

When the Bureau has made your policy available, be sure to review it right away to make sure everything is correct. If there are errors, fix them right away so your next policy period won’t be bogus.

You want to compare your data with what the Office has to make sure everything is in the correct order. You’ll quickly find out that the information may not be correct, so six months’ notice is giving yourself plenty of time to correct everything.

The workers’ compensation insurance rating office makes mistakes from time to time, just like everyone else, so be sure to double check all information and take plenty of time to put things right and avoid any unwanted stress.