Policy — Frequently Asked Questions

Workers’ compensation provides medical and wage benefits to employees injured on the job. 

In the residual market (assigned risk pool), coverage is available for employers who cannot obtain insurance in the voluntary market due to industry risk, prior losses, or limited history. 

Rates and surcharges are standardized to guarantee access—not competitive pricing—but the coverage still provides the same statutory protections for injured workers. 

In almost every state, employers with employees are legally required to carry workers’ compensation coverage. Because requirements vary, check with your state’s workers’ compensation agency for specifics. 

No. Assigned risk (residual market) rates are non‑negotiable. Rates are set by the state or rating bureau and must be applied uniformly. 

While rates cannot be negotiated, you can lower costs over time by: 

• Reducing workplace injuries 

• Improving safety practices 

• Maintaining continuous coverage 

• Reducing claims frequency and severity 

Your workers’ compensation premium is based on: 

• Class code rates
• Payroll
• Experience modification or merit rating
• Assigned risk surcharges
• State fees and assessments
• Any applicable credits or debits 

For example:

(Payroll ÷ $100) × Class Code Rate, then adjusted by MOD/merit rating, surcharges, and other state‑required factors. 

Yes—if employees perform separate duties that fall under different class codes and you maintain accurate records. 

You must track actual hours worked per task. Estimates, averages, and percentages are not acceptable. For additional details on the specific records required, please refer to our Premium Audit page.

In many cases, yes. Most policies provide coverage for employees who temporarily work or travel out of state if they are primarily employed in the home state. 

Some states require special coverage, so always notify us when employees work outside your home state to ensure proper protection. 

If your audit determines additional premium is owed, an endorsement is issued to update your current policy. This ensures your policy accurately reflects your actual exposure. 

Yes. Send payroll change requests in writing to [email protected] and include your policy number. 

If you are requesting a payroll decrease, supporting documentation is required, such as: 

• Tax documentation 
• Payroll journals
• Quarterly reports
• Subcontractor certificates of insurance 

To update your address, please send a written request to [email protected] and include your policy number. 

Please specify whether the change applies to: 

• Your mailing address
• Your exposure/worksite location
• Both 

All waiver requests must be submitted in writing to [email protected]. 

• North Carolina (NC) policies: We can issue a blanket waiver.
• All other states: A specific waiver may be added if you provide:
  • A fully executed, dually signed contract between you and the requesting entity
  • Contract language stating the waiver requirement
  • Project start and end dates (or confirmation that the project is ongoing)
  • Class codes and project‑specific payroll 

Temporary 30‑day waiver: 

If signatures are not yet available, we can issue a temporary waiver for 30 days. To set it up, we still need class codes, payroll, and the project timeframe. If a signed contract is not received within 30 days, the waiver will be removed. 

Workers’ compensation policies renew annually. Renewal quotes are sent at least 60 days before your policy expires so you have time to review and pay before the renewal goes into effect. 

For most states, a Notice of Non‑Renewal is sent when payment has not yet been received 15 days prior to expiration of your current policy. It serves as a reminder that payment is required to renew the policy and avoid a lapse in coverage. 

A MOD is a rating factor that adjusts your premium based on your company’s actual loss experience compared to similar businesses. 

• MOD below 1.00: Lowers your premium 

• MOD above 1.00: Increases your premium 

Your MOD directly impacts the final cost of your workers’ compensation policy. 

Requests must be submitted in writing to [email protected]. 

Please include your policy number. 

For COI requests, also include the certificate holder’s: 

• Name
• Address 

We cannot issue certificates with blank certificate‑holder information.