Why Did My Workers' Comp Renewal Go Up 20% With No Claims?

By Winfield Lee | Lee, Hill & Lee Insurance | June 8, 2026

It's Not Just About Your Claims

You ran a clean year — zero claims, zero injuries, solid safety program. Then your renewal hits and the premium jumped 20%. It feels wrong, but it's surprisingly common. Here's what's actually driving that increase, and what you can do about it.

The 5 Most Common Reasons

1. Your Payroll Went Up

Workers' comp premium is calculated as: payroll ÷ 100 × rate × experience mod. If you hired more people, gave raises, or paid more overtime, your premium base grew — even if everything else stayed flat. A 15% payroll increase with flat rates still means a 15% premium increase.

2. Your Class Code Rate Increased

NCCI and state rating bureaus adjust class code rates annually based on industry-wide loss experience — not just yours. If carpentry (5403) or trucking (7219) had a bad year across the state, everyone in that code pays more, regardless of individual claims history.

Check your dec page: compare this year's rate per $100 to last year's. That's where hidden increases live.

3. Your Experience Modification Rate (EMR) Changed

Your EMR is based on a three-year rolling window, excluding the most recent year. A claim from 2-4 years ago might be hitting your mod now. Or a claim you thought was closed got a reserve increase.

Even if you had zero claims this year, your mod reflects the prior window. And a single moderate claim ($30K–$80K) can push your mod above 1.00 for three consecutive years.

4. Your Carrier Lost Money on Your Class

Insurance carriers set rates based on their own portfolio performance. If your carrier had heavy losses in your industry segment — even if you were clean — they may have filed for a rate increase with the state. This is separate from the NCCI advisory rate.

5. State Rate Filing Changes

States approve rate changes annually. Recent examples:

An "overall decrease" doesn't mean your code decreased. Always check the rate change for your specific class code — not just the headline number.

What You Can Do Right Now

  1. Request your experience mod worksheet from NCCI (or your state bureau). Line-by-line, verify every claim listed. Errors are more common than you'd think — closed claims shown as open, wrong amounts, claims that aren't yours.
  2. Audit your class codes. If your business has shifted (e.g., more finish work, less framing), your codes should reflect that. Reclassification from 5403 to 5651 alone can save 30-50%.
  3. Shop the market. If your carrier raised rates above the state advisory level, another carrier may not have. Independent agents with access to multiple carriers can run a competitive market analysis in 48 hours.
  4. Ask about scheduled credits. Many carriers offer 5-25% premium credits for safety programs, drug testing, return-to-work programs, or claims-free years. If your current carrier isn't crediting you, another will.
  5. Review your payroll classification. Overtime should be reported at straight-time equivalent for WC premium calculation in most states. If your carrier is charging on gross overtime pay, you're overpaying.

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Sources: NCCI Experience Rating Plan Manual; Georgia State Board of Workers' Compensation — 2025 Rate Filing; Florida Office of Insurance Regulation — WC Rate Orders 2025