Workers’ Comp Insurance Rates – How to Save 10-15%
September 3, 2009
Would you like to save 10-15% on your current workers' comp insurance rates?
What if I told you that you could save 10-15% without changing carriers.
It would definitely save you the hassle of all the paperwork associated with a new workers' comp policy.
Now, what if I told you that you could also recover 10-15% from previous years policy's?
Yes, it's true, you can.
On average we can lower your workers comp insurance rates by 10-15% per year.
We've been not only reducing current workers' comp insurance rates for employers but we also recover money from previous years.
The best part is that we are so confident in what we do that we don't require any payment upfront. You don't pay until you have received your refund check.
Sound to good to be true?
Well, it's not.
The simple fact of the matter is that insurance companies make mistakes. All we do is go through and find the mistakes and tell the insurance company to reimburse your company.
It's that simple.
For you at least. For us it's a very detailed process of going through your policy with a fine tooth comb and finding every little error and mistake possible.
You might be wondering, what if we find a mistake in the insurance company's favor?
Like we're going to let them know that you're not paying enough.
We're only going to report mistakes that the insurance company makes and let me tell you there are far more of those than the other way around.
We can only accept a limited amount of clients, so make sure to contact us right away.
Call: 877-506-2220
If you still aren't sure, then you can read more about it here:
Workers Comp Insurance Companies – Mistakes That Increase Costs
August 13, 2009
If you've ever had employees then you've had to deal with workers comp insurance companies. Dealing with the constant threat of increased rates will make any business owner paranoid.
In all likeliness you already realize that there are things that happen in your business that can cause the workers comp insurance companies to increase your rates. What you may not know is that there are also frequent mistakes made by the insurance company that have a negative effect on your business. The following is a list of common mistakes by employers and workers comp insurance companies.
The following are some common mistakes made by employers that cause work comp rates to go up:
- No safety program for injury prevention
- A lack of an effective return to work plan
- Not reporting injuries to the insurance company in a timely manner
- No direct contact with the injured workers doctor
These are just a few of the common mistakes that employers make when dealing with workers compensation. There are many options available that will help you to reduce your costs with minimal upfront costs. If left unchecked the reasons above can amount to thousands of dollars in increased premiums.
The following list are common mistakes made by workers comp insurance companies:
- Employees given the wrong job classification code
- Employer's experience modification was calculated wrong
- Proper discounts and credits never applied
- Payroll calculation errors
Believe it or not, these problems are just a few of the dozens of mistakes that arise. A common problem is the workers comp insurance company calculating the overtime rate at the amount on the payroll instead of at a straight hourly rate.
Another issue is employees being put into the wrong job class category. This mistake can cost a business thousands of dollars. An example is a clerical worker being classified under the roofing code because that person has to go to the job site on an occasional basis.
If you've ever tried to deal with the insurance companies you know how hard it can be to get your rates lowered. Even though you may be right, you may not know what you need to show in order to fix the problem. Then there's the errors that you don't know about that are costing your business money. Mistakes that amount to tens of thousands of dollars over time.
Trust me, I've seen it. I recently saw a policy that had so many errors that the business ended up being refunded $96,000. Essentially, they received back $16,000 a year for the previous 6 years. I don't know about you but I could sure use an extra $96,000.
You may think I'm making this up but you would be wrong. That's not even the largest refund I've seen. Typically on average we see about $37,000 dollars in refunds. Naturally it all depends on how much you're paying in premiums but typically we usually recover about 10% of the premium amount.
Don't take my word for it, try it out yourself and see.
You can read more about it at: Workers Comp Insurance Company Mistakes
Workers Comp Insurance – Inside Tips for Cheaper Rates
August 13, 2009
Before you buy workers comp insurance or switch carriers there are a few things you need to know about how the workers comp insurance industry operates. Having worked in the industry for several years now I have found that many employers don't understand the system.
You probably already know that workers comp insurance is mandatory in your state. What you may not know is that all of the insurance companies have to abide by the same rules.
What does that mean?
Well each state has statutory minimums for coverage. Essentially, no matter which insurance company you buy insurance from they are all going to give you the same coverage. It's not like buying auto or health insurance where you can get higher deductibles or higher co-pays.
In simple terms, workers compensation insurance is calculated based off of your payroll, workers compensation classification codes, and your previous years losses. This is what ultimately will determine how much you pay.
So how can you get cheaper rates?
There's a couple of ways to get cheaper work comp rates. The first way is when you're actually buying the insurance from a broker. You should look for brokers that offer coverage from multiple carriers not just one. Many brokers are required to exclusively carry one company's insurance. What this means is that he won't be able to show you quotes from other companies as a comparison. When you talk to a broker the first thing you should ask is how many carriers does he have access to.
The next thing you need to know is that all of the big companies in your state, change insurance companies almost on a yearly basis. Typically what happens is that workers comp insurance companies offer a great introductory rate (think of credit cards) only to raise your rates each successive year. So if you're a big company it's in your best interest to keep changing carriers to continue to get the best rates.
Since workers compensation insurance coverage doesn't change the only way they can entice buyers is by offering cheaper rates up front. The insurance company's goal is to try and lock you in and start raising rates over time. Naturally they're not going to tell you this but it's a fairly common practice.
Recap on two of the ways to get cheaper workers comp insurance:
- Look for brokers that can offer quotes from multiple companies.
- Be ready to change insurance companies on a yearly basis.
For those of you who are already paying high work comp rates, I would recommend having your policy checked for errors. You may not realize this but workers comp insurance errors are a common problem in the industry. Brokers are usually to busy selling insurance to thoroughly look over your policy and make sure that everything is right.
If you want to know more about it then read: Workers Compensation Insurance Mistakes
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