Why Workers’ Comp Policies Should Be Reviewed Every Year

Workers’ compensation coverage isn’t a set-and-forget policy. Businesses change, job roles shift, and risks evolve over time, which means an annual review is one of the simplest ways to protect both your employees and your bottom line.

Correct Classification Matters: Employee classification drives workers’ comp premiums, and even small errors can create big cost differences. As staff responsibilities change or new positions are added, job codes can drift from what’s accurate. Reviewing classifications each year ensures employees are placed in the right categories, reduces the chance of overpaying, and helps prevent issues during an audit.

Premiums Reflect Real Exposure: Workers’ comp premiums are calculated using factors like payroll, job type, past claims, and the business’s experience modification. These numbers shift as a company grows or contracts. An annual review allows you to confirm payroll estimates, correct outdated data, and adjust coverage to match current operations. This keeps premiums aligned with true risk instead of outdated projections.

Risk Management Isn’t Static: A yearly review also supports proactive risk management. Safety procedures, training programs, and workplace conditions evolve, and insurers look favorably on businesses that continually work to reduce injuries. Reviewing your policy each year helps identify trends, close safety gaps, and implement improvements that can reduce claim costs and strengthen your experience modifier long-term.

A Simple Step With Big Benefits
An annual workers’ comp review ensures your classifications are right, your premiums are fair, and your safety efforts are reflected accurately. It’s a straightforward way to control costs, stay compliant, and protect the people who keep your business running.