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Workers Comp Carriers Cancel Policies For Late Payment of Premiums

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For Late Payment Workers Comp Carriers Cancel Policies

According to the Workers Comp it can carriers cancel policies for late payment of premium.We recently received a great question about Workers Compensation carriers cancelling policies for late payment of premiums that resulted from a premium audit.

Graphic Of Envelope With Cash Carriers Cancel Policies Late Payment
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Yes, a Workers Comp insurance carrier can cancel your current policies for late payment of premiums after receiving a bill. Often you are only given 10 days to pay ONCE THE CANCELLATION NOTICE IS SENT. Your company will usually have a set amount of time to pay the bill once received. These are usually two separate events.

Please see the last few postings that I have written on what to do once your company receives a premium bill. If you receive a cancellation notice and you have questions on the accuracy of the premium audit and the subsequent billing, you have given you and your company very little time to examine the premium bill and audit.

As I have posted very often, once you receive the premium bill, you have a limited amount of time to act on it. Once you pay the bill, you have lost some of your leverage. The main thing to remember is not to just file the bill or ignore it.

Graphic Shield with Cross Mark Carriers Cancel Policies Late Payment
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Due to the economic environment, the Workers Compensation insurance carriers have become much more aggressive in collecting late premium payments. I must say that I cannot blame them for cancelling a new policy if an old one is not paid on time. Even if you think the bill is correct and you cannot pay it, you must still contact the insurance company immediately. If you are unsure if the premium audit and bill are correct, it would be best to call in an expert premium consultant.

Please remember that the clock is ticking when you receive the bill. If you do not agree with it your company can dispute it. However, as I have said in many posts, do not use the dispute process to delay paying a premium bill. That will only ruin the business relationship you have with your agent and carrier.

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James Moore

Raleigh, NC, United States

About The Author...

James founded a Workers’ Compensation consulting firm, J&L Risk Mgmt 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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