Workers compensation programs may vary a great deal in complexity from one risk to another. Accuracy of a workers compensation program depends on specific job descriptions as related to the work being performed by a specific employer. There are many areas in a workers compensation program where mistakes and errors occur. That's why we need to address each client's special needs individually.
I'm going to discuss just a few general issues below.
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 general business 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.
Improper NCCI Classification Assignments -
Are you an owner or corporate officer assigned to the clerical class?
Is this a proper assignment. How will the auditor class you? Do you ever visit your
your clients away from the plant or office? 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 you use salesmen or have an in-house sales department? 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.
Subcontractor or Independent Contractor -
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?
Uninsured Subcontractors - Uninsured Independent Contractors -
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
firms have people on staff who can perform these duties but many smaller firms don't
have that ability and often find huge errors generated due to improper certificate monitoring.
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: [email protected] or give us a call at 931-292-2633.