Independent States for Workers' Compensation Under the NCCI

Independent States for Workers' Compensation

The National Council on Compensation Insurance (NCCI) provides loss cost data and rating information for most U.S. workers' compensation markets. However, five states—California, Florida, New Hampshire, New Mexico, and West Virginia—maintain independent rating systems and do not use NCCI data for their workers' compensation insurance rates.

Why Independence Matters

Insurers operating in these states must rely on state‑specific loss cost tables, which can differ significantly from NCCI averages. Employers in these markets may see higher or lower premiums depending on local industry mix and historical loss experience.

State‑Specific Rating Systems

Each independent state manages its own rating authority:

• California – California Workers' Compensation System (CWCS)
• Florida – Florida Office of Workers' Compensation
• New Hampshire – New Hampshire Workers' Compensation Board
• New Mexico – New Mexico Workers' Compensation Board
• West Virginia – West Virginia Department of Workers' Compensation

Impact on Data Collection

Because NCCI does not collect data from these states, insurers often use alternative data sources such as state insurance department filings, third‑party data aggregators, or proprietary loss cost models to benchmark rates.

Implications for Employers

Employers in independent states should verify that their insurance carriers use the correct state tables. Misalignment can lead to noncompliance, audit risk, or unexpected premium adjustments during renewal.