A special service we provide, this review is designed for the employer who has concerns and questions about codes used on their policy. Ask about this service, learn about its affordable fee or to discover more about the information we'll provide about your current codes, go to our Workers Compensation Code Review page.
Contractors and workers compensation, what a combination!
Contracting risks are ceratinly
a special group when it comes to workers compensation insurance. 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.
In this section we'll discuss a few of the special workers compensation issues that effect contractors and a variety of contracting operations.
Certificates of Insurance -
Certificates of Insurance, also known as COI's, make the construction and insurance world go round. Right.
If you've ever had anything to do with a construction company then you've heard or been involved in the horror stories that revolve around certificates of insurance. This topic is so detailed and so much is riding on it when it comes to the premiums that a contractor may have to pay for his workers comp insurance that we've set aside a complete section of our website to deal with the broad topic of Certificates of Insurance. Just use this certificate link and learn more about certificates, what they are and how they impact a contractors workers comp insurance program. Our 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 -
It's real easy. Let's say you're a contractor and 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 insurance company's workers compensation 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 he was on your job.
Sound familar? Uninsured subcontractor issues happen 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 and must make special effort to make sure they verify workers compensation coverage for their subs and keep on file a valid certificate of insurance for each job a subcontractor performs.
Payroll Separation -
Payroll separation is a very special situation only available to contracting operations. 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. Remember, the auditor knows and follows the rules. Many of our clients have come to us asking for help just because they separated payroll for their employees, but under the rules, were not allowed to do so. Surprise! Surprise! "But I was
told I could do this!" You probably were told by someone along the way that you could break out payroll. 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 confusing this can be and how errors may occur.
Classification errors make up a large percentage of the errors and mistakes we work on. Classification mistakes can occurr for a variety of reasons. Regardless the reason, they can be devastating to a contractors ultimate cost for workers compensation insurance. A simple misunderstanding during the class code assigment process will be corrected at audit, by the auditor.
Did you know that if you are a carpentry contractor who performs both framing and interior trim work on the same job (two separate classifications by the way with trim work generally carrying a much lower rate that framing) all the payroll from that job must go into the higher rated classification? We can't tell you how many times this simple mistake has cost contractors many, many thousands of extra dollars at audit time.
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 and let us get started on your problem!
Be sure to visit these related pages about contractor and subcontractor workers compensation problems and solutions!