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Workers Comp Program Caution – Easy Under Radar Way To Harm It


Workers Comp Program Can Be Harmed In Different Ways

Money And Stethoscope Workers Comp Program Graphic

How can you harm your Workers Comp program? Most employers have concerns that decisions about what to pay and when to pay can harm their business. When Workers Compensation insurance policies are examined for employers, there is one area where large mistakes almost always occur in the policy process.

The mistake is simply writing a check for a Workers Compensation bill – especially a Workers Comp audit bill – without questioning how the insurance carrier or premium auditor calculated the amount. Insurance policy billing statements must be treated the same as bank statements. If not, then overpayments for Workers Comp coverage are almost guaranteed.

One employer wrote a check for over $50,000 because the insurance carrier audited them and sent them a bill. There were miscalculations during the audit, later discovered by an independent consultant. The true bill ended up being less than $20,000. This is becoming more prevalent in recent times.

Always ask for backup documentation on how the Workers Comp policy or audit bill was calculated.  Ask for your premium audit workpapers.  Look it over carefully. There may be no errors. But, at least the assurance is there that the documentation that justifies the billing was reviewed and anything that could be done, was.

Lady Illustrating Workers Comp Program Stack Of Cash

“Just Do Not Write A Check” should be one of the primary mottoes for insurance departments. At a time when every cent counts more than ever, feel 1,000% comfortable with writing the check. If not, trusting instincts and asking questions is Key. The answers to your questions may be very surprising and the results can be very lucrative for your workers comp program and a huge boost to the bottom line.

***Due to popular demand, this is a repost of this information***

Also Read: What Is A Guaranteed Cost Program In Workers Compensation?

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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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