Question: There are many Workers Compensation Consultant companies out there who offer services to employers. Why should we choose you?
Answer: Workers’ Compensation is very complex. With so many factors driving your costs higher and higher, why not choose a Workers Compensation Consultant who offers as many services to employers as is possible? While other Consultants are very good at what they do, we specialize in every aspect of your program.
Question: I’m busy running my business. How much of my time or my staff’s time will the audit take?
Answer: We suggest you or your staff provide copies only of all the policy information. Using the information you provided, the audit is then conducted at our office. Our staff will prepare the necessary letters to your agent or insurance carrier requesting the corrections to be made to your premium billing. Your time involvement is minimal.
Question: How will my insurance agent handle my request for an independent audit?
Answer: Your agent‘s success depends on doing what’s best for you, the client. Agents do not have experienced auditors on staff to do the in-depth review that is necessary.
Question: Why do we need your services when my agent already does that for us?
Answer: Agents deal with all types of Insurance. Workers’ compensation is our specialty. Our Auditors can verify all the details involved in your premium calculations. We will obtain copies of your experience rating worksheets and the auditor’s worksheets to verify their accuracy. Without these items, it is impossible to confirm that you were charged the correct premium.
Question: My carrier just performed an audit. Why do I need your services?
Answer: Carriers perform an annual audit to adjust your company’s estimated payroll to the actual payroll figures. It is not part of the audit to locate overcharges.
Question: What will our carrier think about our company using your services?
Answer: Reputable insurance companies want to be sure that the rules and regulations as mandated by the Division of Insurance are followed. Our review will confirm the insurance carrier’s compliance with these rules and regulations.
Question: You’re actually selling insurance, aren’t you?
Answer: We verify that you have not been overcharged by your current and previous insurance companies. We do not sell insurance, nor do we have any obligation to any carrier.
Question: How often do you really find overcharges large enough to justify using your services?
Answer: We have successfully found and recovered significant overcharges for one-third to one-half of our clients. These overcharges do not just produce “savings”. Our clients realize actual refunds and reductions.
Question: What kind of premium savings are you talking about?
Answer: Typically, our clients can expect approximately 25% of their annual premium in savings.
Question: What if your review finds that we’ve underpaid?
Answer: Because insurance companies have become adept at catching undercharges, but spend nowhere near the same level of effort to catch overcharges, this is a rarity. In any event, we hold in strict confidence all information you provide. Only when directed to do so by our clients, do we disclose information to insurers and rating bureaus
Question: We haven’t had any claims in recent past. Why should we have you review our program?
Answer: We audit all kinds of rating factors that impact all employers no matter what their claims history.
Question: What do you need to get started?
Answer: We will need less information than you may think. We will provide you with a checklist of the necessary documents. Those records along with a letter of authority to obtain documents are what we will need.
Question: How much is this going to cost?
Answer: We work on a contingency basis and our compensation is based on the premiums recovered. In the event that no premiums are recovered there is no fee.
Question: Why do you want information regarding my past policies if they are expired?
Answer: States allow recovery of overcharges up to at least 3 years prior and in some cases even further.
Question: Why do I need an outsider to audit my workers’ compensation program?
Answer: Insurance as a whole is extremely complicated. If any of the statements below are true for your company, you need an audit done by someone who has years of experience and fully understands workers’ compensation.
At any time during the past 5 years:
- Has your company experienced significant increases in Workers’ Compensation premiums?
- Has your company incurred charges for uninsured subcontractors or owner-operators?
- Has your insurance company included in your payroll any owner-operator expenses?
- Do your Classification Codes include “all employees” or “not otherwise classified” (NOC)?
- Has your company changed ownership or business operations?
- Has your company experienced a merger or expansion into other states?
- Has your company left a relationship with an Employee Leasing Company or a PEO?
- Has your insurance company, NCCI, or State Rating Bureau changed, omitted, or added…….
- Classification Rates?
- Classifications Codes?
- Experience Modification Factor?
- Were your Insurance Company’s Workers’ Compensation Audits ……
- More than 120 days after the Policy Expiration Date?
- Conducted via telephone?
- Conducted using 941’s or state unemployment forms?
- Did the Workers’ Compensation Auditor………
- Not leave a copy of his or her Worksheets?
- Ask very few questions?
- Examine very few records?
- Is your payroll audit always brief and superficial?
- Has the NCCI or your states’ rating bureau responded to a question or complaint unfavorably?
- Has your policy’s modifier been labeled as either “contingent” or “preliminary”?
- Has an endorsement increased the modifier after the policy began?
- Has your policy been frequently endorsed with changes to classification, rates, or payrolls?
- Are your employees paid a significant amount of overtime?