Our Blog Readers Questions on Premiums
We received a few questions from our article readers on Workers Comp premium. What is the one thing that I can do to quickly reduce my Workers Comp premiums?
I wish there was a quick fix for paying less Workers Compensation premiums. There is a one-year lag time between anything a company does today and those actions affecting the E-Mod. Taking action today is a start, but it needs to be a long-term goal. An action plan has to be put in place ASAP and then followed for three years to affect the E-Mod.
As I have mentioned in prior blogs, the first thing to do is to quit writing Workers Comp premium checks without understanding the premium bill. If it is a bill from the initial policy, then review every page of the policy and ask questions.
If the premium bill is from a Workers Comp audit, then make sure it is accurate. If there are any questions about the Workers Comp policy or audit, there is a time limitation for disputing the premium bill. Most of our initial contacts from employers are due to “Something just does not seem right – a gut feeling.”
The bottom line is to not just write a check and consider it an overhead or fixed cost. Workers Comp is a variable cost. One of our favorite sayings is “Stop writing checks and ask questions.” If you do not feel comfortable, do not hesitate to bring in a premium, reserve, or claims expert. It will almost always prove to be money very well spent.
I blogged “Red Flags That You May be Overpaying for Workers Comp” a few weeks ago. Check that one out. If you ever have any questions, please feel free to email me at [email protected] or call us.
Up Next – Back to North Dakota’s Workers Comp Conundrum
©J&L Risk Management Inc Copyright Notice
