As the new year begins, employers face one of the most important tasks in workers’ compensation: audit and classification readiness. January is the ideal time to review payroll, employee classifications, and documentation to avoid costly surprises later in the year.  Workers’ compensation audits, usually overlooked, are designed to ensure that premiums accurately reflect an employer’s workforce and exposure. However, discrepancies in employee classifications, payroll reporting, or subcontractor documentation can result in unexpected premium adjustments, penalties, and compliance concerns. Why Classification Accuracy Matters Employee classification directly impacts workers’ compensation premiums. Job duties that are incorrectly classified, due to role changes, seasonal staffing, or misinterpretation of state rules, can significantly inflate costs. This is especially common for employers with evolving operations, hybrid

As we head into 2026, the workers’ compensation landscape in New England is evolving quickly. A wave of legislative changes, rising medical and pharmacy costs, growing mental-health claim activity, and shifting claim dynamics mean carriers, employers, and TPAs must adapt to protect workers and control loss costs. We have put together the most important trends New England stakeholders should watch. Plus, how Arrow Mutual’s policies and programs are designed to respond. 1. Mental-health and PTSD claims will grow (and cost more) Mental-health and trauma-related claims are expanding across the country and are a major cost driver for carriers and employers. These claims tend to be more complex, last longer, and require multidisciplinary care. This pushes reserves and extends claim duration.