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Workers Compensation Program – Main Mistake Causes Harm


What One Mistake Would Harm Our Workers Compensation Program?

What would cause the most harm to our Workers Compensation program?

Picture of Hand Gun Gesture Computer Would Harm Workers Comp Program

I received this question last week. This is one of the unasked questions that are always a concern of most employers. When we examine Workers Compensation insurance policies for employers, there is one area that I always see where large mistakes occur in the policy process. The mistake is just writing a check for a Workers Compensation bill – especially a Workers Comp audit bill – without even questioning how the insurance carrier or premium auditor calculated the amount.

As I have mentioned in many blog postings previously, you must treat your insurance policy billing statements the same as a bank statement.

If your company does not, then you are likely overpaying for Workers Comp coverage.

We just finished an audit where the employer wrote a check for over $50,000 because the insurance carrier sent them a bill. We found on this one, as we do many, that there were some miscalculations during the audit. The true bill ended up being less than $20,000. We do see this more often in recent times.

Picture Of Money Workers Comp Program In Money Clip

We recommend at least asking for backup documentation on how the Workers Comp policy or audit bill was calculated. There may be no errors. At least you can feel good about knowing that you at least reviewed the documentation that justifies the billing. Request the premium audit workpapers from the carrier at a minimum.

We usually say “Just Do Not Write A Check” which is one of J&L’s mottoes we have mentioned in articles and previously in this blog post. At a time when every penny counts more than ever, make sure you feel 1,000% comfortable with writing the check.  If not, start asking questions.  You may be very surprised at the answers and the results for your company.

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James J Moore - Workers Comp Expert

Raleigh, NC, United States

About The Author...

James founded a Workers’ Compensation consulting firm, J&L Risk Management Consultants, Inc. in 1996. J&L’s mission is to reduce our clients’ Workers Compensation premiums by using time-tested techniques. J&L’s claims, premium, reserve and Experience Mod reviews have saved employers over $9.8 million in earned premiums over the last three years. J&L has saved numerous companies from bankruptcy proceedings as a result of insurance overpayments.

James has over 27 years of experience in insurance claims, audit, and underwriting, specializing in Workers’ Compensation. He has supervised, and managed the administration of Workers’ Compensation claims, and underwriting in over 45 states. His professional experience includes being the Director of Risk Management for the North Carolina School Boards Association. He created a very successful Workers’ Compensation Injury Rehabilitation Unit for school personnel.

James’s educational background, which centered on computer technology, culminated in earning a Masters of Business Administration (MBA); an Associate in Claims designation (AIC); and an Associate in Risk Management designation (ARM). He is a Chartered Financial Consultant (ChFC) and a licensed financial advisor. The NC Department of Insurance has certified him as an insurance instructor. He also possesses a Bachelors’ Degree in Actuarial Science.

LexisNexis has twice recognized his blog as one of the Top 25 Blogs on Workers’ Compensation. J&L has been listed in AM Best’s Preferred Providers Directory for Insurance Experts – Workers Compensation for over eight years. He recently won the prestigious Baucom Shine Lifetime Achievement Award for his volunteer contributions to the area of risk management and safety. James was recently named as an instructor for the prestigious Insurance Academy.

James is on the Board of Directors and Treasurer of the North Carolina Mid-State Safety Council. He has published two manuals on Workers’ Compensation and three different claims processing manuals. He has also written and has been quoted in numerous articles on reducing Workers’ Compensation costs for public and private employers. James publishes a weekly newsletter with 7,000 readers.

He currently possess press credentials and am invited to various national Workers Compensation conferences as a reporter.

James’s articles or interviews on Workers’ Compensation have appeared in the following publications or websites:

  • Risk and Insurance Management Society (RIMS)
  • Entrepreneur Magazine
  • Bloomberg Business News
  • WorkCompCentral.com
  • Claims Magazine
  • Risk & Insurance Magazine
  • Insurance Journal
  • Workers Compensation.com
  • LinkedIn, Twitter, Facebook and other social media sites
  • Various trade publications


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