AI for workers compensation insurance agencies, tested first on audit files your team already built.

The policy treats the premium as an estimate. Part Five of the workers compensation policy settles the final premium after the term ends, on the actual premium basis and the classifications and rates that lawfully apply. For a contractor or manufacturer with crews in several class codes, that settlement is where the policy finally meets the books. Your account managers have already built files for that moment, and every closed audit shows what was gathered and what the auditor then found. The answer is sitting in the folder, which makes the test fair.

State law sets the rhythm for construction. Florida's section 440.381 has construction class employers large enough to be experience rated audited at least annually, and every other class at least every two years. The same section sends each employer's quarterly earnings report to the carrier under a sworn statement, and directs that audit rules use state and federal income reports, accounting records and the certificates subcontractors keep. A contractor account can land on your desk every quarter, not once a year.

The audit feeds the worksheet. The payroll and claim figures on an experience rating worksheet come from unit statistical reports, the filings an insurer makes to NCCI on each policy it writes. A class code or payroll figure settled in last year's audit can sit on worksheets for years after it. That is why the second job stands next to the first: the same records, read again against what the bureau published.

Which bureau issues the mod depends on the state. NCCI counts 39 jurisdictions using its Experience Rating Plan. Indiana, Massachusetts and North Carolina apply that plan through bureaus that produce their own intrastate mods, while Minnesota and Wisconsin join only when an employer has exposure in two or more participating states. California, Delaware, Michigan, New Jersey, New York and Pennsylvania sit outside it, with bureaus such as California's WCIRB, New York's NYCIRB and Pennsylvania's PCRB, and North Dakota, Ohio, Washington and Wyoming run their own plans and rates. An employer working in Florida and Pennsylvania ends up with two separate mods, so every sample names its states before anything moves.

Contractors carry one more payroll form. Oregon's Contracting Classification Premium Adjustment Program, as one example, runs on wages and total hours by class for the third calendar quarter before the policy takes effect, leaves out overtime premium pay, and goes without the credit if NCCI doesn't receive the application within 180 days after inception. It is one more place where the same payroll has to agree with itself.

One limit covers both jobs. Commercial lines only. The proof of concept works on copies and never touches your agency management system, a carrier portal or a live policy. It never decides a class code, changes coverage, disputes an audit or tells anyone an experience modification is wrong. A licensed agent or account manager checks each file and handles every conversation with the insurer or bureau. Employee names and personal data stay out of the sample unless your reviewer agrees to redacted or look-alike records. Nothing here is legal or coverage advice.