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Workers Comp Premium Checks -Just Stop Writing – Five Ways


Five Ways – Check Before Writing Workers Comp Premium Checks

Stop just writing Premium Checks for Workers Comp was the first motto that J&L used when we started over 17 years ago. Yesterday, I had two conversations on Workers Comp costs. One was with a risk management adviser and another was with an attorney.

Graphic of Premium Checks Workers Comp
(c) 123rf.com

The attorney and risk manager both were astounded that their new clients were just writing Workers Comp checks without even questioning the basis. I had said that some companies, even self-insured, look at Workers Comp as a tax. The checks are written as a way of doing business.

The two large companies were not regionally specific. One was in Florida and the other was in Illinois. I thought I would quickly cover how to stop just writing checks for Workers’ Comp. I have written on this subject numerous times in the past.

The top five methods in my opinion are:

  1. Question everything you receive. Do not pay for anything that you feel has not been explained to you fully. Keep asking questions when it comes time to pay a premium audit bill. Once you mail the check, you lose quite a bit of leverage.
  2. Obtain full online access to all claims, including adjuster notes and reserves. Even if this costs more, it is money well spent. Check your situation online often.

    Graphic Premium Checks Number 5
  3. Heavily question your yearly premium audit even if you received a refund or credit. I have a list of premium audit red flags you should print and keep handy.
  4. Follow my Five Keys to Workers Comp Savings. I wrote the list 25 years ago and nothing has really changed on them.
  5. Watch your fees whether or not your company is self-insured. We had been reviewing a group of claims earlier this year for a self-insured client. The TPA charged $595 per lost-time claim. The bill review and network fees added on another $1,490 per claim for a total of $2,085 per claim. This does not include the internal rehab nurse fees.

I would never want to say that an insurance carrier or TPA is dishonest. The employers were charged as according to their contract. That is why I always recommend having someone outside of the insurance carrier, TPA, or insurance agency review any Workers Comp policies or agreements and premium audits. I think the correct term is a “disinterested party.”

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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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