Here are some typical areas that we know how to address so your premiums can be minimized. You may have other concerns, as well. As you know, there are many factors to consider and unless you specialize in this niche area, there is a good chance something has slipped by and your premiums have been overstated. Let us take a look.
Claims activity has increased your experience modification.
Credits or discounts are missing or have been reduced.
Your account has been turned over to a collection agency.
Your classifications have been changed, resulting in increased costs.
You did not receive optional credits even though you have had few or no losses.
Your policy is about to be cancelled because of an audit or classification dispute.
The insurance company has not resolved your problem.
The auditor assigned the wages for some of your employees to the highest rated classification even though they have multiple duties.
You are not receiving credits for which you are eligible because you do not know about them.
You have a scheduled rating credit and do not understand how to increase it.
You have a scheduled rating debit and do not understand how to remove it.
You have trouble receiving loss/claims information from the insurance company.
Many rules are overlooked or ignored on a regular basis. Rules change. Unless your records are maintained according to the rules, you may be paying an inflated premium. Since the rules often vary from state to state, access to the NCCI Basic and Experience Rating Manuals is necessary. For example, some states exclude vacation and holiday pay, others do not. Some exclude premium overtime, others do not. There are several independent bureau states that don’t even follow the NCCI rules. You need to be sure to take advantage of every favorable rule in order to minimize your workers compensation premiums.
Think about this- when, if ever, did an insurance company auditor sit down with you, open their manuals, and describe steps to help minimize your premiums to their lowest level?
When was the last time anyone from the insurance company voluntarily searched for mistakes and overcharges going back several years? Never, most likely.
One of the most common statements we hear is that your premium was reviewed by your agent or broker, and they found no errors. If that were true, we would be out of business because all of our clients have agents or brokers, and we work on a contingency basis. If mistakes were not made, we would not get paid. Overcharges are common. Agents and brokers do not specialize in reducing premiums; they concentrate on providing coverage and are paid commissions by insurance companies for doing so. Honest errors and mistakes create higher premiums, as well as higher commissions.
QUESTIONS TO ASK
Are you owed even more?
You are entitled to a copy of the auditor’s worksheets used to determine the final premium. Copies are available from your insurance carrier, and you should always obtain and review them. The audit is requested, conducted, and reviewed by the insurance company. And, don’t think just because you got a refund (or paid a small additional premium) the audit is correct.
Do you review the manuals on a regular basis to search for ways to reduce your premiums?
The Workers Compensation Manual provides the rules and interpretations for Basic and State Special Classifications. Most businesses never see these rules, and do not know that there are many cost saving strategies available for those who know the loopholes.
How would you like to have former industry insiders represent your best interests?
Audits are often questioned or disputed by contacting the carrier directly. Since this is routine business for the insurance company, they know how to “throw rules at you.” Unfortunately, they often neglect to reveal the entire rule. We have been engaged in premium auditing since 1978 and will be your advocate.
Do you have access to the Experience Rating Manual?
Construction companies often hire us because a higher mod factor can exclude them from being hired by a general contractor or bidding on a new project. If your experience modifier must be below 1.00, we will try to help you achieve this goal. We have access to software and can calculate experience mods to help you predict future factors based on losses.