Contractors Workers Compensation Issues

Contractors and workers comp what a combination! Contracting risks are ceratinly a special breed. There are many areas in a contractors workers compensation program where mistakes and errors occur. That's why we need to address some special concerns for our construction company clients. I'm going to discuss just a few here.

Certificates of Insurance -

They make the construction and insurance world go round. Right. We've all heard or been involved in the horror stories that revolve around certificates. My opinion, the insurance industry and ISO should do away with these monsters. However until that day happens we just have to deal with them.

Uninsured Subcontractors -

Real easy. You bring a subcontractor onto your job site to perform a specific job. He does the work and presents you with a bill for services. Your bookkeeper pays him. At the end of your workers compensation policy period the company auditor audits your books. He identifys the work performed by the subcontractor and asks to look at the certificate of insurance the sub provided to you. You can't find one. Your audit comes out and guess what? Right again, you get to pay for the subs work comp while on your job. Sound familar? Happens everyday. This scenerio can be headed off with a good in house certificate management program. Certainly large construction firms have people on staff who can perform these duties but many smaller contractors don't have that ability.

Payroll Separation -

Under strictly controlled circumstances a contractor is allowed to separate payroll into specific NCCI job classifications. Proper payroll separation can help you manage your workers compensation cost. However improper use of payroll separation can provide you with a very large additional premium due after audit. Surprise! Surprise! But I was told I could do this! You probably were. But were you told how to do it correctly?

Improper NCCI Classification Assignments -

Are you an owner assigned to the clerical class? Is this a proper assignment. How will the auditor class you? Do you ever visit your job sites? Do you have a job foreman?

With over 700 NCCI job classifications it's easy to understand how confussion and errors may occur.

We discover errors and mistakes in your workers compensation audits, NCCI experience mod factors and premium calculations. We work to correct these errors and return premium overcharges to your bottom line. Just contact Workers Compensation Consultants to get started.

Go to our Service Agreement. Complete the form and fax it to our office. We'll contact you as soon as possible to get the review process started. Or if you prefer just email: rks@workcompconsultant.com or give us a call at 573-999-6948.