February 10, 2014

If your company is one of the many employers that renewed its workers compensation policy on January 1^st, you have probably already gotten an actual copy of your workers compensation policy by now, or you will be getting it soon.  Many employers just file away the policy without reviewing it or even giving it a second thought.  Although many employers are quite disappointed in seeing their premiums increase in 2014, they assume that workers comp costs are a part of doing business and their premiums have been correctly calculated. Conducting a workers compensation review is a great way to save money for your company.

More Details On How To Review Your Workers Compensation Policy

Of course that is not always the case. It is always good business practice for employers to carefully read and review their workers compensation insurance policy in its entirety.  Even if you don’t understand everything, it is not hard to see where your premium increases are coming from. Are your payrolls higher or lower than last year? Is the insurance company using the same classification codes for your employees? How do the rates in the class codes compare to last year? Has the insurance company added any scheduled debits to your 2014 policy? 

As an employer, nobody has your company’s interest at heart more than you. Be vigilant in reviewing all aspects of your workers comp policy and do not hesitate to ask questions as to why you are paying higher premiums. Of course, you may have a hard time figuring out all the answers, especially whether or not all these charges have been calculated correctly. For example, the process in which the insurance company calculates your experience mod is so complex that it would take a real expert and many hours of careful review to figure out if the experience mod percentage slapped on to your policy is actually accurate.

Another aspect of doing your due diligence for your company is hiring an independent workers compensation premium recovery firm that will meticulously and systematically review your current and several years’ prior policies to find errors and overcharges. In our experience, 90% of companies paying over $100,000 a year in workers comp premiums have been overcharged by their insurance companies. Workers compensation premium recovery is a contingency-based service that will correct these mistakes and obtain refunds and reduce premiums for employers. This service will not cost you a dollar unless you receive a check, credit, or reduced premium from your insurance company. So are you really being fiscally responsible for your company’s finances if you pass up on the opportunity to get free money back and pay less in the future? There’s money out there that’s due back to your company. Don’t leave your money on the table!