If you have ever had employees then you have had to dealwith workers comp insurance companies. Battling with the constant threat of increased rates will make any business owner paranoid.
Chances are you already realize that there are things that occur in your company that can cause the workers comp insurance companies to increase your rates. Other reasons you probably do not know are that there are also frequent errors made by the insurance company that have a detrimental effect on your company. The following is a listing of common errors by business owners and workers comp insurance companies.
The following are some common errors made by business owners that cause workmans compensation rates to go up:
* No safety program for preventing injuries
* No return to work procedure
* Not reporting injuries to the insurance company immediately afterwards
* No direct contact with the injured worker’s doctor
These are just a few of the common errors that business owners make when dealing with workmans comp. There are several things applicable that will help employers to reduce costs with very little upfront costs. If left unchecked the considerations above can amount to thousands if not tens of thousands of dollars in higher rates.
The next list below are common errors made by workers comp insurance companies:
* Workers given the wrong work comp class code
* Business’ experience modification was calculated wrong
* Proper exemptions and discounts never applied
* Mis-calculating payroll
Make no mistake, these problems are just a small sample of the many errors that arise. A common mistake is when the workers comp insurance company is calculating the overtime rate at the amount indicated on the payroll instead of at a straight hourly rate.
A frequent issue is workers being put into the wrong work comp class category. This error can cost a business thousands of dollars. An example is a clerical employee being mis-classified under the construction classification because she is required to go to the work site on an infrequent basis.
If you have ever dealt with insurers you probably know how difficult it can be to get your rates lowered. In all likeliness you may be right, you may not have the tools you need to show them the mistake so that the mistake can be made right. Then there’s the mistakes that you don’t know of that are costing your company money. Mistakes that amount to tens of thousands of dollars each year.
Take it from me, I have witnessed it first hand. I not to long ago reviewed a policy that had a whole host of mistakes that the employer was refunded $96,000. Essentially, the business received back $16,000 a year foreach of the six years past. I do not know about you but I wouldn’t mind an extra $96,000.
You probably think I am making this up but you would be wrong. That is not even the biggest refund that I have seen. Typically on average we find about $37,000 dollars in refunds. Obviously it all depends on how much your business is paying in premiums but typically we usually recover about ten percent of the annual premium rate.
You don’t need to take my word on it. Try it and see, I doubt you will be disappointed.
Click The Link to Continure Reading: Work Comp Insurance Companies
No related posts.
