Why did my workers comp go up if my rates went down?

Workers comp premium is rate times payroll, adjusted by your experience modification and any carrier pricing on top. Payroll growth, a new class code at audit, a higher experience mod or a change in the carrier’s schedule credits can each raise it while the state’s filed rates fall.

Can a carrier raise my premium mid-term?

Not the rate, as a rule. The premium can change mid-term when you add a vehicle, a location or a coverage, and it changes after the term at audit when actual payroll or sales differ from the estimate.

Is a big renewal increase a sign the carrier wants me gone?

Sometimes. A carrier pulling back from a class may raise rates sharply rather than non-renew, and the result is the same. If the increase is far above what other markets quote, that is usually what happened.

When should I start shopping a renewal?

Sixty to ninety days before expiration. That is when the notice arrives in states that require one, and it leaves time for other carriers to quote with your loss runs in hand rather than in the last week.

A coffee shop owner in an apron reading a letter at her counter at closing, the espresso machine and pastry case behind her and street lights through the window

Why did my business insurance go up when I had no claims?

Because your own claims are only one input. A renewal also moves when the carrier’s rates for your class change, when your sales, payroll or vehicles grew, when last year’s audit found more exposure than the deposit assumed, and when the carrier decides it wants less of your kind of business. In California a carrier that raises the rate behind your premium by more than 25% must give written notice 60 to 120 days ahead, and New York requires notice of any increase over 10% with the amount stated. Ask for the reason in writing, then shop it.

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/ Who handles this

Brian Victores

Commercial Insurance Advisor

Licensed in nearly every state, working contractors and small commercial, writing general liability, workers comp and commercial auto. Runs on the principle that the best insurance experience is a boring one: straight answers, fast quotes, no surprises.

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Your current policy paperwork, a renewal notice, or nothing at all. A licensed agent reads it and replies the same business day.

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The detail

In California an insurer must give 60 to 120 days’ notice, with reasons, if it intends to condition renewal of a commercial policy on an "increase of more than 25 percent in the rate upon which the premium is based."
California Insurance Code section 678.1 (commercial nonrenewal notice)
In New York, a conditional renewal on "increased premiums in excess of ten percent" requires written notice that sets forth the amount of any premium increase, mailed 60 to 120 days before expiration.
New York Insurance Law section 3426 (commercial risk insurance nonrenewal and conditional renewal)
The general liability form computes all premiums "in accordance with our rules and rates" and treats the advance premium as a deposit, with the earned premium set at audit, so exposure growth found at audit raises both the audit bill and the next deposit.
ISO Commercial General Liability Coverage Form CG 00 01 04 13 (specimen)
Owners on our calls between August and October 2026 described renewals rising with no claims behind them: a general liability policy that started at $1,700 and climbed about $250 a year to $2,200 at $500,000 limits, another that doubled at renewal, and a workers comp policy that had roughly doubled since inception without explanation.
Boring Insurance call records, calls graded Aug 20 to Oct 4, 2026 (clients and carriers unnamed)

What this means for you

Ask the carrier which input moved. Rate, exposure, experience modification or a new minimum premium are different problems. Your broker can get the rating worksheet or the underwriter’s note, and the answer decides whether shopping will help.
Check the exposure numbers on the renewal. A renewal built on last year’s audited payroll or sales can be higher than your business today. If revenue or payroll fell, say so before the renewal binds rather than waiting for the next audit to refund it.
Count the notice days. In California and New York a large increase without the required notice changes your rights at renewal, and the non-renewal guide explains the late-notice rules. Keep the envelope.
Shop it with your loss runs. A clean history is worth most to a carrier that does not already have you. Order loss runs from your current carrier and send them with the renewal so other markets can price you on the record.

Go deeper on any of these

Need this handled?

Reading about it and having it handled are different jobs, and the second one is ours. We place the accounts other brokers decline — claims history, a cancellation, an unusual operation, a business nobody wants to underwrite twice — and we will tell you when the policy you already have is the right one. Tell us the situation and a licensed human replies the same business day.