Workers’ compensation is regulated differently by each state, which means there are many differences in the way employers handle their workers’ comp insurance in each state. These differences also pertain to how the premiums that the employer pays are calculated. How Is Your Injury Rated? Many states use manuals, a classification system, and an NCCI experience rating formula from the National Council on Compensation Insurance. Not all states use a rating system, and some states use their own rating system instead of the NCCI system. The NCCI is not a regulatory agency; it is a not-for-profit corporation. It was created by the insurance industry to help standardize the fine details associated with workers’ comp insurance premium computation. The NCCI rating bureau provides member states with a rating system. The system is complicated and not every state uses it. The NCCI develops rules about what services get assigned to what codes, how payroll funds are allocated, what gets excluded under what circumstances and develops rates for the premiums. The ratings and manuals are used to determine how much the employer pays for its own workers’ comp insurance premiums. Should You Speak With an Attorney? If you have questions about the NCCI workers’ compensation insurance rating system in your state, an attorney can help answer all your questions. The ratings formula is very complicated and it is typically used by insurance companies and employers. You do not need to understand how the rating system works or which rating bureau your state uses if you get injured and need to collect benefits. Your benefits are not affected by workers’ compensation ratings. An attorney can explain to you the benefits associated with the workers’ comp insurance plan your company has elected to purchase. You can find a workers' compensation lawyer in your area by filling out our Free Evaluation.
