Difficulties with Workers’ Compensation Insurers

If you have ever had employees then you have dealtwith workers comp insurers. Battling with the non-stop threat of increased rates will make any business owner paranoid.

Chances are you already realize that there are many things that can happen in your business that can cause the workers comp insurance companies to raise your premiums. What you probably don’t realize are that there are also many errors made by the carrier that have a detrimental effect on your business. The following is a listing of common errors by business owners and workers comp insurance companies.

The following are some common errors made by business owners that cause workmans compensation premiums to rise:

* No safety plan for injury prevention
* A lack of an effective return to work plan
* Not reporting injuries to the insurance company in a timely manner
* No communication with the injured employee’s doctor

These are only a few examples of the common errors that business owners make when dealing with work comp. There are many things applicable that will help companies to lower rates with very little upfront costs. If not watched the items listed above can amount to thousands if not tens of thousands of dollars in increased rates.

The following list below are common errors made by workers comp insurance companies:

* Workers assigned the wrong job classification code
* Employer’s experience modification was calculated using the wrong information
* Proper credits and exemptions mis-applied or never applied
* Errors with payroll calculations

It may be hard to believe but, these errors are only a small sampling of the dozens of errors that arise. A common problem is when the workers comp insurance company is calculating the overtime rate at the amount indicated on the payroll instead of at a straight hourly rate.

A frequent problem is workers being put into the wrong job class category. This error can cost companies thousands of dollars. An example is a clerical employee being classified under the roofing code because she is required to go to the work site on an occasional basis.

If you have ever tried to deal with insurance companies you probably realize how difficult it can be to get your premiums lowered. In all likeliness you may be correct, you may not have the knowledge you need to show them the problem so that the mistake can be made right. Then there’s the errors that you don’t know of that are costing your business money. Errors that add up to tens of thousands of dollars over time.

Take it from me, I have seen it. I just a short while ago saw a policy that had so many errors that the business was refunded $96K. Basically, the company were refunded back $16K a year foreach of the six years past. I don’t know about you but I could definitely use an extra $96K.

You may think I am embellishing the story but you would be wrong. It’s not even the largest refund I’ve seen. On average we find about $37,000 dollars in refunds. Of course it all depends on what your business is paying in premium rates but on average we usually recover about ten percent of the annual premium.

Sound too good to be true? Try it and see for yourself.

You can read more about it at: Workman’s Comp Insurance Companies

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