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!