We Usually Hear From Companies Just Before Or After Policy Renewal
The workers comp policy renewal date sparks much interest from most employers whether it is approaching or has just passed in the last few days or weeks.
This is a question that was posed to me at a recent conference – when do you hear from companies the most? Surprisingly, the 80/20 rule applies here.
- 80% of the companies that contact us have just renewed or are going to renew their Workers Compensation policies within the next few days.
- The above 80% that contact us after the policy renewal is when they question their premium audit.
- 20% contact us at other times during their Work Comp policy year.
If you have just renewed a policy and we find errors in your Work Comp policies, your company would likely lose one year of refunds. There is a three-year “look-back” for premium recoveries. If we are contacted on January 15 on a January 1 renewal, the third year that is further in the past may be lost. We recently had a small trucking company lose the third year of refunds which were worth about $30,000 to the company.
The best time to contact us is three months before ( the earlier the better) your policy expires. That gives us time to do a very thorough premium review. If you want us to do a reserve review, then we need to start three months after your policy renews.
Do not get me wrong, we are always glad to hear from companies that need our help with their Workers Compensation policies. We just hate to see a company miss out on a year or many years of recoverable funds, especially in this economy.
Next Up – How do Premium and Reserve reviews differ? (Hint – night and day difference)
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