A special service we provide, designed for the small to medium size employer who has concerns and questions about codes used on their policy. To order this service, learn about its affordable flat fee or to discover more about the information we'll provide about your current codes, go to our Express Code Review page.
Distribution operations and workers compensation premium, a few things to know!
Workers compensation programs for distributors or distribution operations may vary a great deal in complexity from one risk to another. Like all workers compensation programs accuracy of the premium an employer pays depends on specific job descriptions as related to the work being performed. We find there are many areas in a workers compensation insurance policy where premium mistakes and errors occur. Every client is different, each have special needs when it comes to workers compensation premium problems, each need to be specifically addressed.
On this page we'll discuss a few workers compensatiion premium problems found common to most distributors.
Experience Modification Factor (e-mod) -
Experience Modification Factors are very complicated in their simplist form. Many factors come together in one place to generate an experience modification factor for your business.
Correct information is paramount as to the accuracy and proper application of these factors to your workers compensation premium. If you qualify for an experience mod factor you will receive your copy from NCCI each and every year. It's very surprising
how many business owners never have their e-mod worksheets reviewed by independent sources. The impact of inaccurate e-mods can be incredible. For example a 5% error on a business with a .92 e-mod and a $100,000 annual workers compensation premium would generate a savings of $4,600!
Don't be fooled just because you have a good e-mod. Errors can occur in every situation when it comes to this complicated calculation. That's why we want to be your independent eyes. Workers Compensation Consultants has only one interest and that's discovering errors for you!
Payroll Separation -
Is payroll separation allowed or not allowed for manufacturing operations?. 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. We'll let you know if payroll separation is really allowed for your business.
Incorrect NCCI Classification Code Assignments -
Are you an owner assigned to the clerical class? Do you have a quality control department? Is it separate from your plant operations? Do you or your employees ever visit your clients away from the plant? Do you operate in multiple sates or have multiple locations? Do you have a job foreman? Do you deliver or have over-the-road drivers employed? Do you employ design, engineering, draftsman or other technical personnell? Do any employees telecommute or otherwise work from home? Do you use salesmen or have an in-house sales department? How will the auditor classify these employees? These are just a few areas that may generate mistakes or errors in your workers compensation program.
Certificates of Insurance -
They make the 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. Be sure to visit our special section about certificates of insurance to learn about these little monsters!
Subcontractors or Independent Contractors -
Are they really subcontractors or independent contractors? Do we really care?
Do you have any other business performing work for you either on or off your premises? Do they perform the same type of work as your operation?
Are they performing other types of work for you? Are they performing specialized work you need for your business?
Are uninsured contractors performing work for you? Whether you call them a subcontractor or independent, this topic can be a problematic. If you use an uninsured independent contractor be preapred to pay workers compensation premium on them. That guy you hire to clean out the gutters on your building or the plumber you call to fix a problem or the painting contractor you use to completely repaint your plant...all can create unidentified premium issues for you at audit time.
Be sure to contact our office with any questions about the premium producing areas on your workers compensation policy. We may be able to help you avoid paying higher premiums!
Just contact Workers Compensation Consultants and let us get started on your problem!