Workers Comp Year End Strategies to Cut Comp Costs
These are the Workers Comp year end strategies if your company’s Workers Comp policies renew on January 1, there are at least 10 strategies to implement to cut your costs. The first five are
- Your E-Mod is already set in stone with very few exceptions. The E-Mod was pegged many weeks ago. A reserve review is a waste of time at this point. Search for my posts on Unit Stat Date.
- There are many options to a regular Workers Comp policy. Organizations of any size have many choices such as PEO’s, self insurance, self insurance pools, small or large deductibles to name just a few. I have posted on this often.
- The Workers Comp premium auditor will audit your policy from 1/15/11 to 3/1/11. Make sure that your records are in order, especially if your company uses sub-contractors.
- Talk with your agent about extending your policy renewal date for one month or more. Agents drown from 12/15 to 12/31 of each year. Your company will get much better service by not having a 1/1 renewal date.
- If your company is going to work in other states, make sure that your policies cover your employees when they work in each state. If an employee tries to file a claim in a different state than your home office and your company does not have coverage, things could get a little messy. I have seen insurance companies deny coverage for a company not having paid premiums in a certain state.
- The reserve review process must be ongoing. As the insurance carrier will change the reserves when needed, you cannot just review them at random or once per year. The best time to start reviewing your company’s reserves is 90 days after your new policy starts. That gives you 3 months to review and negotiate any reserve reductions.
7. As I have posted many times, YOU MUST HAVE ONLINE ACCESS TO YOUR CLAIMS. Waiting for a monthly or quarterly paper loss run is throwing away $$$. Online access is worth paying a little extra for the service.
8. Make sure that you document all communications with any insurance personnel such as adjusters, auditors, agents, customer service. I always recommend sending a letter or email. Phone calls work well as a follow up to your letter or email. Phone calls are not a great standalone documentation tool.
9. Read your Workers Comp policy from front to back before renewal. This is especially important if you are switching insurance carriers. Ask your agent for a copy of the WHOLE policy. You will find some very interesting requirements and agreements from the carrier.
10. Work the numbers from the check you are going to write at renewal back to what was the basis for the charges. This is very TRUE for your yearly premium audit bill. You have the right to know what you are paying for at a renewal or an audit.
11. Bonus Before you renew your Workers Comp policy, ASK QUESTIONS. No one in the insurance industry, even your agent, is going to frown upon your inquiries. Companies that ask questions save $$$.
If you have any questions on the 10 Strategies, please drop me an email at [email protected]
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