NCCI COVID-19 Rule Changes and the Effect on Workers Compensation Premium in the Present
    04/16/2020

    COVID-19 has taken the world by storm and changed the way we live our day to day lives. New questions surrounding the pandemic and insurance emerge daily, while changes to the insurance landscape loom.

    With more and more employees being forced to work from home, NCCI has provided guidance on how to classify employees while they do so.  Employers can change the classification of their employees to a Clerical Telecommuter Employee, 8871, which has a rate range of $0.03 to $0.14 across the NCCI states. If this class code is lower, the employer will have the option and be responsible for maintaining separate payroll records to reflect these changes to lower their current premium. We realize the need for many is right now, so it is worth noting that these premium savings will not be realized until the time of audit, unless the carrier accepts a reduced payroll endorsement.

    NCCI also proposed a rule change for employers that are still paying employees even though they are not working. In this proposed rule change, this payroll will not be used in the calculation of premium. Again, this will be the employer’s responsibility to maintain the separate payroll to reflect this. Another key point will be determining the retrospective aspect of this proposed rule. Many employers have sent home employees already. It will be important to watch if the NCCI states pass the rule with a retrospective feature, which would allow employers to capture the entire qualified payroll period, including the time prior to the effective date of passage for this proposed rule. Please note that this is a possible rule change and is awaiting approval by the State Insurance Commissioners. We don’t control the approval or execution of this proposed rule, but historically when NCCI suggests a rule of this type, it is approved by the NCCI states. This proposed rule is also just for NCCI states, although we are seeing state funds also adopt this rule.

    While this proposed rule change and the reclassification of employees would save employers in the short-term, the long-term effect this could have on experience modification calculations remains to be seen. The lower submitted payroll and less expensive class code would both adjust the modification calculation and result in lower expected loses. The employees being home, working or not, should lead to less actual losses for the same time frame, but there are still two other years on the worksheet and since the experience mod basically uses a three-year average, this could lead to increases in experience modification factors. To be best prepared for this situation, contact your AssuredPartners team to run an analysis on possible mod impacts.

    To stay up to date with the latest COVID-19 WC changes by each state, click here.   This link will be updated as changes are accepted and approved at the state level for WC. 

    07/15/2020
    LAKE MARY, FL – July 15, 2020 – AssuredPartners, Inc. is pleased to announce ENV Insurance Agency, LLC of Liverpool, NY has joined AssuredPartners. The dedicated team of 26 will remain under the operational leadership of Ed Vaughn and Terry Engels. The agency currently reports $7.5 million in...
    Read

    07/09/2020
    LAKE MARY, FL – July 9, 2020 – AssuredPartners, Inc. is pleased to announce ENV Property & Casualty, LLC of Liverpool, NY has joined AssuredPartners. The team of 14 will remain under the operational leadership of John Levanti and Joe Morelli. The agency currently reports $2.5 million in annualized...
    Read

    06/26/2020
    LAKE MARY, FL – June 26, 2020– AssuredPartners, Inc. is proud to announce WTPhelan & Co. Insurance Agency, Inc. of Cambridge, MA has joined AssuredPartners as the 20th acquisition of 2020. The team of 58 will remain under the operational leadership of Robert Ramsey. The agency currently reports...
    Read

    06/19/2020
    LAKE MARY, FL – June 19, 2020 – AssuredPartners, Inc. is proud to announce Rand-Tec Insurance Agency of Vernon Hills, IL has joined AssuredPartners. The staff of 24 will remain under the operational leadership of Todd Silver. The agency currently reports $8 million in annualized revenues. Todd...
    Read

    06/12/2020
    AssuredPartners recognizes the significant impact that COVID-19 has had on our nation. As COVID-19 continues to affect health systems across the world, AssuredPartners is proud to continue supporting our communities and healthcare providers during this time. We are pleased to announce our $20,000 donation to...
    Read

    06/08/2020
    LAKE MARY, FL – June 8, 2020 – AssuredPartners, Inc. is pleased to announce Williams & Williams, Inc. of Smithtown, NY has joined AssuredPartners. The staff of 4, led by Glenn Williams, currently reports $1.2 million in annualized revenues. “Founded in 1928, we pride ourselves on three...
    Read

    05/28/2020
    LAKE MARY, FL – May 28, 2020 – AssuredPartners, Inc. is pleased to announce the acquisition of Cypress Insurance Group, Inc. of Fort Lauderdale, FL. The team of 20 will remain under the operational leadership of Terry Bond and Debbie Arciola. The agency currently reports $3 million in annualized...
    Read

    04/21/2020
    LAKE MARY, FL – April 21, 2020 – AssuredPartners, Inc. is pleased to announce the acquisition of Transportation Insurance Advisors, LLC located in Sanford, FL. The team of 55 will remain under the operational leadership of Scott Light, in addition, the agency currently reports $14 million in...
    Read

    04/15/2020
    LAKE MARY, FL – April 15, 2020– AssuredPartners, Inc. is proud to announce GIGA Solutions, Inc. of Boca Raton, FL has joined AssuredPartners as the 15th acquisition of 2020. GIGA Solutions provides tailored insurance solutions for the PEO industry. The team of 9 will remain under the operational...
    Read

    04/06/2020
    LAKE MARY, FL – April 6, 2020 – AssuredPartners, Inc. is pleased to announce the acquisition of Early, Cassidy & Schilling, LLC (EC&S) of Rockville, MD. EC&S has been a trusted insurance advisor in Maryland since its founding in 1927. New York based advisory services firm, Dowling Hales,...
    Read