How often should employers review their workers' compensation insurance coverage?

Employers should review their workers' compensation insurance coverage at least annually to ensure that their policies remain adequate and appropriately tailored to their business needs. This annual review allows employers to assess any changes in the workforce, adjust for fluctuations in payroll, and consider any modifications in business operations that may impact coverage requirements. Since laws, regulations, and market conditions can change, this review helps ensure compliance and that the coverage reflects current risk exposures.

Regular annual assessments can also uncover gaps in coverage or areas needing adjustments as a business grows or evolves. Such proactive management fosters a culture of safety and financial preparedness, reducing the likelihood of issues when claims arise.

The other options do not provide a robust strategy for maintaining adequate insurance coverage. Reviewing every five years may lead to outdated information and potentially insufficient coverage. Waiting only until a claim is made can result in substantial risks if there is a coverage gap at that critical moment. Monthly reviews may be excessive for most employers, as they could lead to unnecessary administrative burdens without yielding significant benefits, given that changes to coverage usually do not require that degree of frequency.