Workers Compensation Rates — What Insurance companies Don’t Want You to Know!
Workers’ compensation rates have been on the rise in the united states.
Wouldn’t you want to know if you are being overcharged?
Insurance companies are infamous for giving people the runaround when it comes to analyzing their Workers Compensation premium amounts or the calculations of their experience https://www.crunchbase.com/organization/workers-compensation-leads modification rating. It’s in the insurance company’s best interest to keep you ignorant about your policy. If you knew about these mistakes you would be demanding a refund on your overpaid workers’ compensation premium.
Things They don’t Want You to Know:
Lack of One Thing Supervising the process: The insurance company will only do as much as they have to according to the state insurance laws. They don’t calculate the experience modification factor or develop classification codes. This is done by rating credit bureaus like the National Local authority or council on Compensation Insurance (NCCI) or in California the Workers Compensation Insurance Rating Agency (WCIRB). The insurance agency or broker is paid by the insurance companies and are susceptible to contracts with them. Because everybody works independently of each other, too many hands coming in contact with crucial computer data can lead to mistakes that cause you to be overcharged!
Your Experience Rating Compares Your Company’s Past Premiums with Past Losses: In reality, the formula compares the actual sustained losses for your company with average loss data for all companies in the state who utilize the same classification codes and similar amounts of payroll.
Large Insurance companies Don’t Make Mistakes: The entire system is situated upon a method of canceling data that almost guarantees mistakes. First, is simply the “human element” — people making mistakes, that leads to the “garbage in — rubbish out/overpaid premium” problem. Second, there is the timing issue, with canceling the data to the agency that works out the experience modification. Lastly, even as have discussed above, no one is performing a quality control check on themselves or on each other.
There are Errors in the Calculations of your Audit Premium: Unfortunately, many insurance company premium auditors are under tremendous pressure to audit as many policies as possible. On top of that, they are badly competed in Workers Compensation laws and auditing procedures. As a result, payrolls are often reported incorrectly. They either are overstated, not restricted to legitimate audit rules, or misclassified. Either way, it is costing your company money.
Insurance companies Would not Recommend an impartial Audit: The workers’ compensation insurance industry is burdened with errors from wrong classification codes to simple incorrect computations, costing your business money. Because of the intricacy of the Workers Compensation system and the various entities involved, there is no general method to correct these errors. An impartial audit would reveal these errors, entitling your company a refund, which will make the insurance companies look bad.
Would you allow an IRS agent to conduct an audit without an expert at your side?
Wouldn’t it seem like a good business move if you were to achieve the IRS call you, ask you to send them your estimated taxes for the year, then you can keep them pick-up your records at the end of the year and just trust that they made sure you paid the lowest amount of taxes you’re legally obligated to pay?
I do not think so!
A worker’s compensation audit performed by the insurance company could actually cost you more than an IRS audit. Typically a workers’ compensation audit occurs every year, whereas you may never get audited by the IRS.
With Workers Compensation rates skyrocketing these days, it’s a smart proceed to speak with a workers comp consultant about reviewing your insurance premiums to make sure that you are not being overcharged.
With over 70 years of combined experience in the workers’ compensation industry, our experience and “inside knowledge” of the system permits us to understand the side-effect and red recording that can occur when dealing with workers’ compensation premium overcharges and get you the money you are due.