In our experience more than 3 out of 4 employers are overcharged for their Workers' Comp insurance, and most businesses are overcharged by 5 to 15%. We help employers to recover those overcharges and reduce their premiums going forward. This is regardless of whether your company has had a lot of claims, or none at all.
There are over 42 areas that we look at when auditing your Workers' Comp Premiums.
The first area we review is your Industry Classification. There are hundreds of possibilities, so we make certain your company is coded in accordance to your specific industry and operation.
The second area is the PAYROLL EXCLUSIONS that your business is entitled to. There’s about a dozen of these payroll exclusions, such as overtime and severance pay, and if they have not been taken, then your business would be entitled to a recovery.
The next area is your EXPERIENCE MODIFICATION rate. We analyze the frequency and severities of your past claims, and we recalculate and resubmit all the numbers. In many cases, we have found the MOD to be incorrect because a mistake has been made and we can get the rate lowered. Obviously, a reduction in your MOD, even a small one, can equate to a large refund and future discounts.
The fourth area is your RESERVES. Insurance companies are required to hold enough funds in reserve to cover all outstanding claims. When an accident is reported, they open a claim and set aside a reserve based upon what they feel they may ultimately have to pay out for the claim. Claims are opened, and reserves are set, as soon as an accident is reported, however they are often not closed until months, and sometimes over a year, after they should be. Since reserves are treated the same as claims actually paid, those reserves increase your MOD and therefore increase your rate.
We review your loss runs and verify that claims were closed when they were supposed to be and that reserves were closed when they should have been. We recalculate your MOD for this and for technical mistakes.
The sixth area we review is your EMPLOYEE JOB CLASSIFICATIONS. There are over 600 different general classifications and over 2,000 when you add in all of the state special classes. Each classification has it's own rate and often employees are improperly classified. We will verify that your employees are properly classified.
Between these and a list of other areas, we have a very high success rate in identifying overcharges, obtaining refunds, and reducing premiums by as much as 15% or more.
We don't sell Worker's Comp insurance, so we don't look to replace your insurance broker or insurance company.
We work on a contingency fee basis, receiving a portion of the refunds and credits that we obtain for our clients. This means that there is no charge for our work unless and until we actually produce the refunds and savings. If there is no refund, there is no charge.
We know that your time is valuable so we will not to take up more of your time than absolutely necessary. Any documentation we need that you do not have readily available, we will obtain from your providers and, of course, all information is held in the strictest confidence.
To Request Information,Contact Us or call Cherelyn Riesmeyer at 800-598-5587.
Food Services Company
Thank you for a great job in recovering over $120,000 in overcharged worker’s compensation premiums from AIG and Wausau Insurance Company. We thought our annual audit would uncover any overcharges but learned that mistakes can still occur in our Experience Modifier, reserves and Job Classifications. Your expert knowledge of Workers Comp insurance really produced results.
Your service has my highest recommendation. - Senior VP, CFO