Workers Compensation Terms and Practical Definitions

This glossary of workers compensation terms and definitions is provided to better help you understand the language of workers compensation insurance. You’ll find that many of these terms refer to special pages found within our website and that they provide not only a workable definition but many times examples and practical applications of when and where you’ll find these terms being used. These definitions of workers comp terms are provided not only for employers and business owners but also those insurance agents, auditors and other insurance professionals who work within the workers compensation arena.

Just use the listing below. Click on any term you want to know more about and it will take you to a separate page on our website that goes into details about that term. We try and provide you with a useable description of the terms listed below. We know that it can be confusing and that sometimes the terms we use in the workers compensation arena may not be familiar so this is our attempt to cut through the bull and give you real life usable explanations of these common workers compensation terms. And…if you need help with something specific, do not hesitate to reach out to us. We may actually be able to help you out! If you like the information we provide on our website please remember to share it with your friends! Thank You!

Please visit back often, this is a section of our site that is constantly being updated!


Advisory Organization

Aircraft Seat Charge

All States Coverage

ARAP – Assigned Risk Adjustment Program

Assigned Risk Plan (The Pool)


Anniversary Rating Date

Anniversary Rating Date Endorsement

Assigned Risk Premium Differential Endorsement


Audit Worksheet

Audited Workers Compensation Premium


Basic Premium


Broad Form All States Endorsement (no longer exists)


Carrier, Insurance Carrier, Insurance Company

Certificate of Insurance


Classification Code

Coal Mine Disease Charge

Competitive State Fund

Contingent Experience Rating Modification Factor Endorsement

Contractors Premium Adjustment Credits

Credit Modifier

“D” Ratio

Debit Modifier

Declaration Page


Small Deductible Workers Compensation Plan

Deposit Premium

Direct Writer

Dividend Plan



Effective Date

Expected Loss Ratio


Employee Leasing

Employers Liability Endorsement



ERM 14 Form

Estimated Annual Premium

Excess Losses

Expected Losses

Expense Constant

Experience Period

Experience Rating Form

Experience Modification Factor (E-Mod)

Experience Rating Modification Factor Endorsement

Experience Rating Plan

General Contractor

Ghost Policy

Governing Classification

Guaranteed Cost Plan

High Experience Modification Rate or EMR

Increased Employers Liability Limit

Incurred Losses

Independent Contractor

Inspection Process

Interstate Experience Modification

Interstate Experience Rating

Intrastate Experience Rating

JUA Joint Underwriting Association

Large Deductible Plan


Loss Runs or Loss History

Loss Sensitive Plan

Manual Premium

Merit Rating

Minimum Premium

Manual Rate

Modified Premium

Monopolistic States

Monopolistic State Fund

Name Change

Named Insured

NCCI – National Council on Compensation Insurance

NCCI Inspection Process

Non Completed Audit


Owner-Controlled Insurance Program

Ownership Change

Paid Loss Retrospective Plan

Part One of Workers Comp Policy

Part Two of Workers Comp Policy

Part Three of Workers Comp Policy


Payroll Audit

Pending Rate Change Endorsement

Policy Period Endorsement

Premium Calculation Algorithm

Premium Discount Endorsement

Premium Modifier

Rate Change Endorsement

Rating Bureau

Rating Formula

Remuneration and Payroll

Retention Plan

Retro Plan

Retrospective Rating Plan

Risk Classification

Schedule Rating

Second Injury Fund

Self Audit Form

Self Insurance

Site Inspection

Standard Exceptions

Standard Premium

State Fund


Subject Premium

Uncooperative Audit

Unexpected Audit Bill

Uninsured Subcontractors

UniStat Reports

Unit Statistical Reports

Who Is Insured

Workers Compensation Inspections

Workers Comp Premium Refund Review

Workers Compensation Insurance



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