What happens to premiums if an insured changes to a less hazardous occupation?

When an insured changes to a less hazardous occupation, premiums may be refunded and/or reduced because insurance risk is assessed based on the occupation of the insured. Occupations that are considered high-risk typically lead to higher premium rates, while those that are deemed less risky usually have lower premiums. When an insured takes on a job that presents a lower risk of injury or illness, the insurer may recognize this reduced risk and adjust the premium accordingly.

Insurers often have specific underwriting guidelines that dictate how occupations are categorized and how much of a premium adjustment can be made based on such changes. If a policyholder informs the insurer of a change to a less hazardous occupation, the insurer may review the policy and potentially reflect the lower risk in the premium structure, resulting in a reduced premium or even a refund of excess premiums that were charged based on the riskier occupation. This adjustment acknowledges the insurer's reduced liability and aligns the policy cost with the current risk level.