Assigned risk frequently asked questions
We’ve gathered the following information to address frequently asked questions about the assigned risk market and workers compensation coverage.
Why is our premium different from our quote?
Quotes are estimates and are subject to change. Several factors could change between the time the quote is received and the time the policy is issued, such as rates, experience modification factors, and payroll exposures.
How can we lower our premium?
Work with your broker or agent to determine whether you can obtain coverage from a voluntary carrier, to decide whether it is advisable for any executive officers of the corporation to exclude themselves from coverage, and to verify that all class codes and estimated payrolls are accurate. Also, be sure to obtain current copies of workers compensation certificates of insurance for any vendors or subcontractors performing work for you so that our premium auditors can exclude those payroll entries from final premium calculations.
Who determines our experience modification factor?
Experience modification factors are used to adjust workers compensation premiums based on your business’ loss experience. The National Council on Compensation Insurance (NCCI) or your state rating bureau calculates any experience modification factors.
How do we contact the NCCI or other state rating bureaus about our experience modification factor?
You can find contact information on the NCCI website.
Each of the following states has its own rating bureau website:
Delaware: Delaware Compensation Rating Bureau
Indiana: Indiana Compensation Rating Bureau
Massachusetts: The Workers Compensation Rating and Inspection Bureau
Michigan: Compensation Advisory Organization of Michigan
New Jersey: New Jersey Compensation Rating and Inspection Bureau
North Carolina: North Carolina Rate Bureau
Pennsylvania: Pennsylvania Compensation Rating Bureau
Wisconsin: Wisconsin Compensation Rating Bureau
Why do we need a premium audit?
The purpose of a premium audit is to calculate your final premium. When your policy was issued, your premium was based on estimated exposures. By auditing your policies, we can ensure that your business pays the correct premium based on actual exposures.
What will the auditor need to review during the audit visit?
The auditor will be able to obtain most of the necessary information from one or more of the following:
- Payroll, sales journals, and/or summaries
- Individual earnings records or workers compensation employee earnings summaries
- Cash disbursements journal
- General ledger
- Quarterly tax reports
- Financial statements
- Subcontractor cost and certificates
The audit process will be much easier and could work to your advantage if you maintain detailed records. Your payroll records should indicate what types of jobs each employee performed during your policy term and how much they were paid.
For construction or erection operations, the payroll of an employee may be allocated to authorized construction classifications if proper records are maintained. If you do not maintain such a breakdown, we must place the entire payroll of the employee into the highest-rated classification that describes any part of the employee’s work. Keep in mind that we can only divide an employee’s payroll between more than one classification using actual wages, not according to a ratio or percentage split of the payroll.
How do we request a copy of the audit worksheets?
You may request a copy of the worksheets from the Premium Audit Department by emailing the information to AuditOpsIMO@Libertymutual.com or fax a written request on company letterhead to 603-334-0291. An officer of the company must sign the request. We will not provide copies of the audit worksheet to anyone other than your agent without your permission.
We do not agree with our audit. How do we dispute it?
A formal dispute must include all of the following in order to be considered:
- A detailed written explanation of why you believe your bill is incorrect and all relevant documentation
- A detailed written explanation of your estimate of what the premium should be, including a premium calculation
- Payment of any undisputed portions of the premium owed, submitted by the bill’s due date
Please submit your dispute via email, mail, or fax using the information below:
Liberty Mutual Insurance
PO Box 704000
Salt Lake City, UT 84170-4000
For physical audit disputes, contact our Audit Operations Department at:
Fax #: 603-334-0291
For self-audit disputes, contact our Inside Audit Department at:
Fax #: 603-427-1885
How do we request or change information about our policy?
Please contact our Customer Service Information Center by emailing us, or calling 1-800-653-7893.
How do we cancel our policy?
After consulting with your broker, submit a written request on company letterhead, including the requested effective date, signed by the owner or officer of the company. Also include documentation showing proof of coverage with a new carrier, such as a declaration page or a binder letter indicating the name of the carrier, policy number, and effective dates. Send this notification to us via email.
Whom can we contact with questions about employee safety and health?
Please email us.
This website is intended to be informational. Descriptions are provided only as a summary outline of the products and services available and are not intended to be comprehensive and do not constitute an offer to sell or a solicitation. The products and services described may not be available in all states or jurisdictions. See your policy, service contract, or program documentation for actual terms, conditions, and exclusions. Any inquiries regarding the subject matter set forth herein should be directed through licensed insurance professionals.
Coverage and insurance are provided and underwritten by Liberty Mutual Insurance Company or its affiliates or subsidiaries. When we offer insurance products, we will state clearly which insurer will underwrite the policy. Some policies may be placed with a surplus lines insurer. Surplus lines insurers generally do not participate in state guaranty funds and coverage may only be obtained through duly licensed surplus lines brokers.