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Due Diligence Overused Term But Necessary in Work Comp Insurance


Term Of The Day – Due Diligence

The Due Diligence is one of those overused terms in insurance, especially Risk Management.  The term was started with the post stock market crash and resulting depression. Congress passed the Securities Act of 1933.  The term was born out of that Act.

Picture of Hand Emphasizing On Risk Management Due Diligence Infographic

Due diligence was mainly aimed at stock broker companies and their employees.  The brokers were charged with the responsibility of making sure they researched a stock thoroughly before they recommended it to clients.

To me, the term means going above and beyond the efforts of an average prudent person when recommending any type of financial transaction.  In Workers Compensation, for example, the broker/agent is charged with exercising due diligence in recommending one policy or insurance program over others.

The insured has relied on the agent to perform a search above and beyond what the insured would have done in the same situation.   The insured has relied on the agent to make sure all loose ends are tied up before policy renewal.  The agent earns a commission for those efforts.

As a Chartered Financial Consultant, I am charged with always practicing with a level of “covering all the bases” before I recommend any type of workers compensation reduction strategies.

Due diligence was at the heart of the bid-rigging investigations in the mid 2000’s.   The lack of due diligence was very apparent in certain Workers Comp insurance situations.

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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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