Tuesday, March 31, 2009

Common Industries Where A Workers Compensation Review Will Help -

Over the years I've been involved in a lot of workers compensation policy reviews. I've been asked to describe those industries that I've seen benefit from having a workers comp policy audit review completed. If you're interested in what a professional workers comp audit consulting firm has to say about this then go here: Who Benefits Most From A Workers Comp Policy Audit Review, otherwise keep reading!

Here's a short list;
  • Car Dealerships
  • Wholesalers
  • Tool and Machine Shops
  • Millwrights/Foundries
  • Printing Companies
  • Manufacturers
  • Auto Repair Shops
  • All Construction Contractors
  • Masonry Contractors
  • Plumbing Contractors
  • Electrical Contractors
  • Drywall Installation
  • Concrete Construction
  • Steel Construction
  • Paving Contractors
  • Ready Mix Operations
  • Carpenters
  • Lawn and Landscape Maintenance
  • Churches
  • Machine Shops - Tool and Die
  • Warehouses
  • Sheet Metal Shops
  • Churches
  • Hospitals
  • Home Health Care
  • Physicians
  • Restaurants
  • Colleges and Universities
  • Building Maintenance
  • Condo Associations
  • Public Entities
  • All Types of Non-Profit Organizations

    If you own or operate a business that falls into one of these categories, then you should seek out professional audit consulting help and have your workers comp policy and audits reviewed. You may be surprised at the errors they find that could put money back in your pocket!
  • Monday, March 30, 2009

    Should I File An Audit Dispute On My Workers Comp?

    We are asked this question quite often by business owners and clients alike. Here's my take on filing a formal audit dispute.

    Let's begin by stating when you should not file a dispute;

    1. If you think you pay too much for your workers comp....not a good enough reason to file a dispute. You must have details and be able to show why the audit is factually incorrect. You cannot just rely on the idea you pay too much in premium!

    2. When you don't have enough money to pay the audit and just need a little time....bad idea to file a dispute. Payment issues should remain just that, payment issues. An audit dispute should never be used as a delay technique. Even if you do file an audit dispute, you still have to pay that portion of the audit premium not in dispute, and you must provide details!

    So when is it a good idea to file a workers comp audit dispute?

    1. When there is a clearly definable mistake found on the audit.

    2. Payroll numbers used by the auditor do not match those provided.

    3. A misclassification or change in work comp codes was applied to your workers.

    Check out more details on when to file a workers compensation audit dispute at this page: How and When to File a Workers Comp Audit Dispute

    So if you don't file a dispute then what can you do if you think there is a problem with your audit but you're not really sure where to start.

    1. To begin with you should always be able to talk with the auditor, even after the audit is complete. If you have any question about how or why they arrived at what they did, contact the auditor and ask them!

    2. Ask your agent for help. After all, your agent is the one who is most times responsible for establishing the work comp codes used and classifying the payrolls into the proper codes for the policy.

    3. When in doubt always seek professional workers compensation consultants help. Most of the folks out there who provide this assistance have many years of experience and will be able to help you with most any workers comp audit problems. I've had success in working with Workers Compensation Consultants who can be found at http://workcompconsultant.com.

    Hope this blog has been of some help to you. Thanks!

    Friday, March 27, 2009

    New Workers Compensation Benefits Web Pages

    Workers Compensation Consultants has just put up three new web pages with valuable, free updated information about injured employees and workers rights and benefits for Alabama, Tennessee and Florida. These pages contain detailed information about medical payments due a worker because of an on the job injury, tips on how employee lost wages are calculated and provided, Temporary Total Disability (TTD), Permanent Total Disability (PTD) and Permanent Partial Disability (PPD) limitations, death benefits and limitations on attorney fees along with other valuable contact information.

    Here's the pages:

    Alabama Workers Compensation Benefits
    Tennessee Workers Compensation Benefits
    Florida Workers Compensation Benefits

    So if you are looking for workers compensation benefit information for any of these states just click on the above link.

    Thanks!

    Thursday, March 26, 2009

    The Workers Compensation Classification Code System

    The workers compensation classification code system was developed with the idea of grouping similar types of businesses into a single identifying class with an individual assigned code number. This grouping of businesses requires that each business operation contain similar work processes. In other words the type of work being performed would appear similar in the manner completed, the potential risk exposure for injury to those workers performing the work task and the overall process used to complete the task.

    Here's how this system fits into the overall pricing mechanism for workers compensation insurance; Once a business has been classified and assigned the proper workers compensation code, the insurance company then gathers the payroll or remuneration for that class code assigned. The payroll or remuneration then becomes the exposure base on which the workers comp insurance premium is calculated. Here's an important part, each workers comp code has its own associated rate.

    So each work process is identified and placed into the proper code, right? Well not so fast!

    Now we have to talk about the concept of the governing classification.
    The governing class code is that individual code which best describes the total business operation and where most of the payroll for the operation is generated. For example, under the roof of a metal goods manufacturing plant you may find different, but similar individual work processes. You may find lathing operations, welding, planing, boring and other metal working or finishing processes. You may also find in the shipping department those workers who package, wrap and ship the finished goods. The governing class code for this type of operation would be that of a metal goods manufacturing plant. So rather than many individual work comp class codes, as you might expect, you would only find the single code of metal goods manufacturing. Confusing, you bet!

    The workers comp code for a metal goods manufacturing business would perhaps carry a a $9 rate per 100 of payroll depending on the individual state involved. The code for a retail drug store would carry a rate per 100 of say $2, much lower than the manufacturing operation. It's pretty obvious in this example, the higher the risk, the higher the rate.

    This is just a small example of how the workers compensation classification code system works and how it impacts the cost of a workers comp policy. So armed with this information it's easy to see how important a role proper classification plays.

    In future blogs I'll go deeper into the code relationship with the cost of a workers comp policy. I hope this information has been helpful.

    Learn more about the workers compensation classification system at Workers Compensation Consultants.


    Thanks!

    Wednesday, March 25, 2009

    Misclassification Of A Workers Compensation Code

    I have performed many hundreds of workers compensation audit and code reviews over the years and will offer up for your reading pleasure several of these real life examples in this blog and blogs to come.

    We were recently asked to review the workers compensation insurance program for a large manufacturing operation. The plant manager of this operation had a feeling that the current insurance carrier was using the incorrect workers comp codes for the type of work performed at the plant. The operation at this particular plant involved assembly of hydraulic hoses with an end use in the heavy equipment industry.

    Sometimes workers comp codes and classification of a risk are easy....sometimes they are not! In this case the current insurance carrier had been classifying this plant as metal goods manufacturing. The metal goods manufacturing code includes such individual operations as stamping, planing, grinding, boring and other metal working procedures. In fact this plant in the past had been set up and performed pressing and metal working operations, where the metal goods manufacturing code would be appropriate. The review of this operation generated what we call a classic change of operation without notification. The owners changed the plant operation from one of manufacturing to one of performing assembly operations of previously manufactured items, without informing their workers comp carrier.

    As with the example mentioned in a previous blog we were able to reclassify this operation to one of plumbing supplies assembly, a code which addressed the business operation more accurately. This reclassification resulted in a premium savings to this business of over 30%!

    While not all business owners may enjoy the same type of outcome from a workers compensation code review as this operation it is certainly worth your time and effort to have your codes checked. Remember, no insurance company will question your desire to have these codes reviewed and when an error is found they will make the corrections needed to your policy. After all, the insurance company also wants the information to be correct!

    For more information on misclassification of workers comp codes go to: Workers Compensation Code Reviews

    Thanks for your time and I hope this blog has been helpful!

    Free Workers Compensation Benefit and Rule Information - A National Workers Compensation Website

    Workers Compensation issues are confusing especially when you try to find or need helpful information about workers benefits, on the job injuries and disabilities or if you need facts about workers compensation rules, statutes and laws for any individual state. If you search the web for this information you will certainly find hundreds of sites hawking their information about workers comp. Here's a site that's a little different!

    Workers Compensation Consultants is a professional workers comp consulting firm. In addition to providing workers comp consulting services on a wide range of topics they also operate a national website that contains a ton of free information for employers, insurance companies, adjusters, employees, injured workers and medical providers. This site is laid out in an easy to find, factual, common sense manner that allows anyone with an interest in workers compensation or with a workers comp problem to find information on injured worker benefits, state by state rules and laws, how to prepare for an insurance audit, how to file a proper dispute, how to verify workers compensation codes and many many other topics of interest about workers comp.

    So be sure to check out Workers Compensation Consultants, you'll not be disappointed by the information found on their site!

    Thanks!

    Tuesday, March 24, 2009

    Help with Workers Compensation Codes

    Workers compensation codes, right or wrong, are one of the primary driving factors in the cost or workers compensation insurance.

    When a workers comp policy is first set up, an agent or broker asks a series of questions to try and determine the correct workers comp code to use on the policy. This code is a description of the type of operations being performed at any given business. There are somewhere around 700 workers comp class codes available for use depending on the state in which your business is located.

    The application of these codes can be very confusing not only to employers but also to insurance professionals. With so many to choose from you'd think it would be easy to make a proper classification. Well, code application can be deceiving. Here's some information on a recent case I worked;

    • A large company recently acquired a manufacturing plant in which they produce hoses and fittings for the automotive industry. The workers compensation insurer was left in place after the acquisition. I was contacted by the new plant manager who asked me to review their workers compensation codes. The existing insurer had this risk classed as "machine shop." After a close review it was determined the proper code for this risk would be "plumbing supplies manufacturing." Correcting the workers comp code for this risk resulted in a 10% savings in workers comp cost on a payroll of over $900,000.

    Workers comp codes do make a big difference! So make sure your business is properly classified! It's the first step in saving money on your workers compensation cost.

    Here's a link to a page all about workers comp codes: Workers Compensation Codes

    Thanks!

    Monday, March 23, 2009

    Be Prepared For An Insurance Audit

    On this page we give you helpful tips and suggestions on how to get ready for an insurance company audit. Those who are best prepared have an easier time in getting their audit completed and have a better outcome once the audit is finished.

    On this page you will learn:

    • How to prepare your records for an insurance audit;
    • How to deal with an insurance company auditor;
    • What records you will need to have at hand in order to complete the audit;
    • How important Certificates of Insurance; are and what role they play in the audit process and cost of your workers compensation insurance;
    • How to simplify the insurance company auditors job;
    • About the types of insurance audits performed and how they effect the accuracy of your audit;
    • About the audit statement; how to read it and what to look for in regards to errors.

    This page will teach you the inside tips on how to get an audit completed without the normal hassle associated with this process.

    Here's a link to the page:

    Workcompconsultant.com: Tips About Insurance Audits

    Thanks!

    Friday, March 20, 2009

    How To Review Your Own Workers Comp Audit - Checklist for Accuracy

    When it comes to workers compensation, one of the thorns in every business owners side is completing the workers comp audit. A necessary step in arriving at a final cost for your workers compensation insurance. But you have to remember, the auditor is not on your side. They work for the insurance company, not you, and their job is to make sure all premium producing charges are accounted for on your policy. So what can an owner do to make sure they're not being overcharged for their workers comp premium? A simple review of your workers compensation audit is the answer.

    Do you have to hire someone to review your audit? No. Common sense will take you a long way in verifying the accuracy of your audit. Are there times when you will need help? Yes. Sometimes audits are very complicated and the proof is in the details!

    How can you know if there is a problem with your workers comp audit? To me it usually starts with a business owner who has a bad feeling or a gut feeling that their audit is wrong. I've found that most business owners have a good handle on the expenses driving their business and they know when something just doesn't feel right. Sure there are those deep hidden mistakes that go on for years undiscovered, but the recovery audits I've been most successful seem to come from a business owner who questions the accuracy of the audit performed.

    Here's a quick check list you can use that may indicate you have a problem:

    _______ You received an audit billing much higher than you expected;
    _______ You did not receive completed audit worksheets from the auditor;
    _______ You were charged for work done by a subcontractor;
    _______ Payroll used for your audit was different than supplied;
    _______ Credits were removed from your policy at audit.

    These are just a few indicators you should use. For a more complete list go to this page: Problem Audit Indicators

    I'll have more on how you can check your own audit in future blogs! Thanks!

    Thursday, March 19, 2009

    Workers Compensation Payroll - When payroll means more than you think!

    What constitutes workers compensation payroll? Well it certainly includes more than you think!

    In the strange world of workers compensation the term "payroll" means a lot more than the normal person would think. In fact the word "payroll" is not really used by workers comp professionals, rather, the term "remuneration" is the more accurate word used.

    Remuneration means to give, pay for service, to make up for or to compensate. This leaves the door open for interruption of the meaning and when it comes to the world of workers compensation, interpretation is never a good thing. So the work comp governing authorities have defined just what constitutes remuneration and there are a lot of "non-money" items included.

    Would you believe:

  • payments or compensation to workers for use of their own tools is payroll?
  • that commissions, profit sharing plans and holiday pay would be included?
  • the rental value of housing provided for use by workers is included as payroll?

    and the list goes on....

    Did you know:

  • that uniform allowances are not considered payroll?
  • that certain employer supplied perks like use of company vehicles and incentive travel are not included?

    like wise the list of excluded items goes on and on....

    So, what's this all mean to an employer? Well, it means the workers comp pitfalls continue to exist around every corner. If as an employer, you thought your workers compensation payroll was just that, money you paid your workers, you may just be very surprised when the insurance company auditor reviews your books and adjusts your workers compensation premium.

    For more information on workers comp payroll and remuneration be sure to visit this page provided free for your use by Workers Compensation Consultants.

    Here's the link: Workers Compensation Payroll and Remuneration
  • Wednesday, March 18, 2009

    A Guide To Workers Compensation Benefits - Help for Injured Workers

    Injured on the job? Do I have workers workers compensation benefits? Will my medical bills be paid? What about my lost income because I can't work due to my injury on the job? How much will I get paid? Will my job still be there for me? Can I be fired because of my injury?

    If you're injured on the job you'll find that these are just a few of the questions that may go through your head. Workers compensation benefits can be confusing for everyone involved, even the professionals and finding a good source for answers is important.

    Work comp benefits that apply in one state may not apply in another or if they do may be drastically different. For example medical payments may be limited in one state and unlimited in another; Temporary Total Disability (TTD) payments for lost wages may be set at 66 2/3% in one state with no caps and in another state 75% of a workers average weekly wage but capped at a certain maximum level; Permanent Partial Disability (PPD) and Permanent Total Disability (PTD) may be treated completely different in different states. So when looking for information and answers about workers compensation benefits, you have to be specific; workers comp benefits are state specific and finding a good single source for answers to workers compensation benefit questions is not easy.

    Here's a link to a good, easy to navigate directory of workers compensation benefits for all fifty (50) states:

    Workers Compensation State Benefits Directory

    You'll find answers to your questions about workers comp benefits for any state at this site.

    Thanks!

    Sunday, March 15, 2009

    Workers Compensation Benefits for Injured Workers - A Summary of All State Benefits

    Workers compensation benefits for injured workers are different for each state and while there are some similarities the differences can be quite drastic. Finding workers comp benefit information can be frustrating for injured workers.

    If you're an injured worker and looking for answers to questions you may have about workers comp benefits, you should check out the very popular, new Injured Worker Benefits Directory provided free for your use by Workers Compensation Consultants.

    This guide of workers compensation benefits is broken down by each state and provides easy access to any specific states workers compensation benefits summary. You'll also find on the individual state pages a great link that takes you directly to that state's workers comp governing authority's website for more detailed information and contact information for help for the injured worker.

    So if you need a quick summary and fast answers to your questions about workers compensation benefits make sure you visit this page:

    Injured Worker Benefits Directory

    Hope this information is helpful. Thanks!

    Monday, March 9, 2009

    How to Control Workers Comp Costs In These Tough Economic Times

    Workers compensation insurance is a real burden for many employers, especially during these tough economic times. I'm going to take a couple of minutes here and talk about a few workers comp topics all business owners should look at right now, items that will really help control their workers comp costs.

    • Review Your Workers Compensation Policy:
        You must be diligent. Insurance companies really do make mistakes. When you get your workers comp policy in the mail from the insurance company don't just throw it in the pile behind your desk! Take a few minutes and compare the issued policy with the quote your agent gave you or with your policy from last year.

    • Look At Your Payroll:
        If the payroll on your policy doesn't seem to make sense to you, contact your agent and ask them why it shows the way it does. There could be a mistake in the way the insurance company put your payroll on the policy.

    • Look At The Class Codes:
        Class codes are the descriptions of your business listed out on your policy. It's very important these codes accurately describe your business operations. If you have any questions about why certain codes are shown on your policy you have to ask your agent to explain the reasons. There could be real reasons or there could be mistakes.

    • Check Your Rates:
        Each class code has it's own rate per 100 of payroll. If your rate seems to be wrong or much different than last year, especially if it is higher, contact your agent and ask them to explain why. Workers compensation rates in general are depressed. But you must keep in mind workers comp rates are different for each state. If you have any questions, ask the question!

    • Check Your Emod (experience mod):
        If your business qualifies for experience rating you will have an experience mod that is applied to your premium. Look on your policy for this term and you will find it on your declarations page. If you have a mod that is higher than 1.0 you must ask your agent for an explanation. Keep in mind this mod factor is assigned to your business and is partially based on the claims experience your business has had. Know what your factor is and why!

    • Check For Schedule Credits:
        Schedule credits are applied by the insurance company if your company has been good! Really they are a modification factor that is supposed to be earned for things like good management. In fact so many companies now use schedule credits only as a pricing adjustment tool. Ask your agent if you have scheduled credits applied to your workers comp policy. If not ask why!

    • Always Have Your Workers Compensation Audit Reviewed:
        While you certainly can help yourself and review your own audit Workers Compensation Consultants, a professional workers comp consulting firm, can work with you to fix errors that are found. Don't be afraid to ask for professional help. Keep in mind the goal is to review all premium producing areas of your workers compensation policy and who better to do that than a firm that specializes in helping employers recover premium from insurance companies who have made errors.


    Hope this has been helpful for you. This information is brought to you by Workers Compensation Consultants. Don't be afraid to ask for help when you need it!

    Friday, March 6, 2009

    Check Your Workers Compensation Audit - and learn how to reduce your workers comp costs!

    Many employers unknowingly throw thousands of dollars away simply by taking their insurance company's word and paying their workers comp audit without having it reviewed!

    Go to this web page for free information on how to check your workers compensation audit:

    How to check your workers compensation audit.

    Many employers think checking their workers compensation audit is hard to do when in fact a quick simple check may just catch a problem and put money back into their pockets. On this page you'll find a series of questions designed to help you determine if your workers comp audit has a problem. It will also guide you to professional help with your audit if you feel you need additional help getting a problem corrected.

    So if you are a small or large business with a workers comp policy and think you have found a problem with your workers compensation audit be sure to check with Workers Compensation Consultants. They will review your audit, confirm your suspecions and work to get your audit adjusted!

    This information is provided to you free by Workers Compensation Consultants, a professional workers comp audit and code review company.

    Thursday, March 5, 2009

    Workers Compensation Laws - Find State Workers Comp Laws, Rules and Regulations Here!

    If you are searching for information on any specific State's Workers Compensation Laws then go to this page. Here you will find a great workers compensation state law reference that provides information on each state's workers comp rules and regulations:

    Workers Compensation State Laws, Rules and Regulations Reference

    If you need to know:
  • who's required to carry workers comp;
  • workers comp rules for sole proprietors, corporate officers, LLC members or partnerships;
  • if workers compensation waivers are allowed;
  • the workers compensation numerical exceptions for your state;
  • how your state treats workers compensation for contractors;
  • how to contact your state's workers compensation authority;
    then this is where you need to begin your search.

    Just check out the list of all 50 states on the right side of the page, select your state and you'll be taken that individual state's re-cap of the work comp laws.

    This information is brought to you free by Workers Compensation Consultants!

    Thanks!