Professional Insurance Programs

Wisconsin Workers’ Compensation – Cancellations and Proof of Coverage

The WCRB (Wisconsin Compensation Rating Bureau) recently evaluated the cancellation of workers’ compensation policies and found there are inconsistencies in how they’re processed. As a result, the WCRB has provided these guidelines:

The State of Wisconsin requires continuous proof of workers’ compensation coverage for all employers. Once an insurance carrier has provided proof of coverage, the dates used for policy cancellation must be:

  1. The equivalent of proven replacement coverage OR
  2. 30 days after receipt of notice by the WCRB and the insured.

Furthermore, backdating cancellations in Wisconsin is not acceptable. Ch 102.31, Wis. Stats., and Ins 21, Wis, Adm. Code require that no cancellation is effective until 30 days after proper notice of cancellation has been given to both the WCRB and the insured. The only provision in the statutes or code that will change the 30-day notification is replacement coverage. Replacement coverage will cancel coverage for the prior policy as of the effective date of the replacement policy. THERE ARE NO PROVISIONS FOR BACKDATING.

As such, effective immediately, West Bend will process Wisconsin workers’ compensation cancellation requests this way:

A cancellation at the insured’s request will be processed with one of these effective dates only:

  • The effective date of proven replacement coverage OR
  • The transaction date plus 31 days (transaction is reported to WCRB 1 day after processing).

Please refer to WC 48 06 06 and/or the statutes referenced above.

As always, if you ever have any questions about your policy, please call us at 800-637-4676.