First, some general workers compensation information....
It is estimated that between 1/3 and 1/2 of all workers compensation policies contain some form of premium error or mistake. Most of these errors and mistakes are in favor of the insurance company and to the detriment of the employer or policyholder. Our own experience helping employers with workers compensation problems indicate the real number may be between 1/2 and 2/3. Regardless the actual number, these errors and mistakes cost employers many thousands of dollars each and every year in premium overcharges. We find many employers turn to a workers compensation audit consultant when they need help with a work comp problem.
Most work comp premium problems are complicated and very difficult to easily identify. Due to the complex nature of workers compensation premium calculations and numerous areas found within the whole workers compensation insurance process where mistakes occur, it's almost impossible for an employer to discover and correct these errors on their own. Don't hesitate to contact a work comp consulting firm if you find you need help with any workers compensation problem.
Our experience has found that many times an employer's first indication of a problem is when they are presented with a large, unexpected audit billing from their insurance company. A request for help is then made by the employer to the insurance company and of course, any request for help goes on deaf ears. While the employer is trying to figure out what to do, the insurance company is, not so patiently, waiting on their money! When the employer doesn't pay up they get a "nice" letter from the insurance company's collection agency demanding payment! Sound familiar? If it does, please read on....
Helpful Hints and Steps You Can Take to Solve a Work Comp Problem....
Solving a workers compensation problem can be a challenge due to the many different areas in which a workers compensation problem may occur. The hard work only begins once a problem is identified. It is an even greater challenge toconvince the insurance company to make the necessary corrections on a policy. Below are some hints and steps you can take to solve a work comp problem.
First identify the problem...
Is it premium related?
Is it audit related?
Is it related to a mistake on your experience modification factor?
Is it classification related?
Is it claim related?
Has your insurance company made all statistical reporting required within proper guidelines?
Is there a problem at all?
Then isolate the problem details...
If premium related, develop and identify the details leading to the error.
If audit related, identify the specific audit related item that contains the error and determine the reason for the error.
If it is related to your experience modification factor, be specific as to the mistake in the emod calculation.
If you determine there is a classification error you will have to identify the error within the classification rules of your states governing body.
If your problem is claim related have your claims been reported and handled correctly? Do you understand the potential underlying costs to you generated by poor or incorrect claim reporting and handling procedures?
If your insurance company has made mistakes with statistical reporting on your account you need to make requests for these corrections within very specific time constraints.
Maybe there is no problem at all. Have you just made a business mistake and erred in your business projections? Just because you want to believe there is a problem doesn't mean there is one!
Make the appropriate corrections...
Contact your insurance company with a detailed explanation with proof as to why they need to make a correction.(Remember, the workers compensation insurance company is always right until proven wrong!)
Contact any governing body you need for help making the identified corrections. Sometimes you will need the help of the governing body to force corrections to be made.
Be sure to do all this during your spare time...
WHAT SPARE TIME????
Some final thoughts....
At first glance workers compensation insurance seems to be a very simple insurance policy, at least until problems occur. However, it can be very difficult discovering and correcting workers comp problems on your own. It can become a very time consuming process. When you need help with a workers compensation problem we always suggest you use the service of a professional workers compensation consultant. Here are a few tips on searching the web for more help...
Search Google by looking for "workers compensation audit consultants." This is a pretty broad search and will list many of the top workers compensation consulting firms across the nation.
Keep in mind that workers compensation is a state controlled insurance product so you may also try searching Google for "(your state name) workers compensation audit consultants." This will give you those firms who do work in your state.
Look for a workers comp consulting firm that offers affordable compensation options. It's common that most consulting firms charge a standard fee of 50% of the recovered amount when a contingency fee option is available and choosen by the client. As a side note, for many of our services, we offer our clients a choice on how they want to pay us. The Contingency Fee Plan, Hourly Rate Plan or the Combination Plan. We find most clients choose the Combination Plan which offers our services at reduced rates in which we share in the return premium or credit we are able to get back for you. Please refer to our Affordable Compensation Options for more details. And remember, our services are affordable!
Remember...if you need it, Workers Compensation Consultants is your first resource for help with workers compensation problems, work comp premium problems, workers comp audit errors and workers compensation dispute resolution assistance.