Work Comp reserve reviews premium audits for employers
Whether you call it Workman’s Compensation, Workmen’s Compensation, Workers’ Compensation, Work Comp, or Workers Comp, it is still the same, silent budget killer. Workers’ Compensation is one of the most complex and confusing components of your insurance budget. Premium audits, experience modification factors, classification codes, reserve reviews, and state regulations & statutes all add to the chaos. The question as to whether your company is being overcharged is not an easy one to answer. Only by working closely with your carrier or your insurance agent can the answer be found. Errors and overcharges occur in over 50% of all policies.
Workers Compensation premium audits occur yearly within 60 days after policy expiry. The premium auditor will usually contact your company within 30 days after policy expiry to set up a premium audit appointment. The premium audit letter you receive will have listed the specific items to be reviewed by the auditor.
The premium audit is not the same as a tax audit, but should be treated as such. Organization is the key to any successful audit. If your records are disorganized, this will reflect on your company overall. After your premium audit is complete, you will receive a premium audit results along with a premium audit billing.
If you do not understand or have questions on the audit results and the billing, you have the right to have all of your questions answered and to even to initiate a premium audit dispute if you do not agree with the results.
All of the procedures and rules for a premium audit or premium audit dispute are spelled out in your policy. Time is of the essence in forwarding your dispute to the insurance carrier. If you do not agree with your premium audit bill, the worst mistake is to set on the bill and do nothing.
Many insureds have questions to how their claims were handled by the adjuster. Often times, the adjuster has performed well. However, there are the instances where the claims adjuster did not do their job. One of the most common errors is to over-reserve the files. An adjuster usually has to set an initial reserve at 14 days with a final reserve at 60 days after the claim was received by the carrier or Third Party Administrator.
File performance audits and reserve reviews are part of our Workers Comp Risk Management services. We provide a holistic view of the process from the time the claim is received until the last premium audit billing is published for that file. We do not just do premium audits or reserve/performance audits.
Our list of services covers what we do on a daily basis for employers.
J&L Risk Management Consultants, Inc. has the experience and expertise to wade through all of the confusion and help your company reduce its insurance budget. We have had great success in the past auditing premiums, verifying e-mods & class codes, double checking rates, and helping employers resolve disputes with their carriers. Your money could be in the hands of your insurance carrier. Get workers comp advice now and get that cash back where it belongs.