Tuesday, July 26, 2011
Kansas - Affidavit of Exempt Status - HB 2134
Effective 05-15-2011, Kansas passed a workers compensation bill that allows individuals who may be expemt from the workers compensation act to provide others they may work for with an Affidavit of Exempt Status. This affidavit, when properly executed and in the posession of the receiving party, relieves the receiving party from any workers compensation claims made by the individual providing the affidavit. It's a great step forward in clearifying some muddy water when it comes to hiring independent contractors. You can read more about this topic on our website on the Kansas State Rules pages. Hope this helps you out!
Tuesday, April 6, 2010
How Far Will They Go To Avoid Paying Workers Comp?
What a question! There seems no end to how far some people will go to avoid paying their fair share of workers compensation premiums. Don't get me wrong, workers comp premiums can be very expensive for a business owner to cough up and during tough economic times some folks turn to fraud as a way to bilk the workers compensation insurance company out of premium dollars they owe!
In the news you'll find a Kentucky coal mine operator recently charged with fraud. They allegedly set up a shell trucking company and showed payroll for some of their underground miners in the trucking company to avoid paying the higher underground mining rates.
You'll find others are not as creative and resort to things like shifting payroll from higher rate workers comp code classes to lower rate classes, this is called misclassification of employees; or not reporting workers as employees but considering them as subcontractors or independent contractors, there are many rules that apply when determining employee status; And on and on...
So, yes workers comp can be expensive and any business who has a workers compensation policy should have that policy reviewed for accuracy by an independent work comp consultant. Honest mistakes are made by insurance companies every day, mistakes that can be found and corrected with the proper help!
In the news you'll find a Kentucky coal mine operator recently charged with fraud. They allegedly set up a shell trucking company and showed payroll for some of their underground miners in the trucking company to avoid paying the higher underground mining rates.
You'll find others are not as creative and resort to things like shifting payroll from higher rate workers comp code classes to lower rate classes, this is called misclassification of employees; or not reporting workers as employees but considering them as subcontractors or independent contractors, there are many rules that apply when determining employee status; And on and on...
So, yes workers comp can be expensive and any business who has a workers compensation policy should have that policy reviewed for accuracy by an independent work comp consultant. Honest mistakes are made by insurance companies every day, mistakes that can be found and corrected with the proper help!
Tuesday, March 30, 2010
Workers Compensation Telephone Audit
There are several methods that an insurance company may use in completing the workers comp audit process. They are:
- The mail or self audit
- The physical audit
- The telephone audit
Remember, the audit process is a policy condition, a requirement found within the work comp policy contract. Yes...I said contract!
The typical telephone audit goes something like this...
- Shortly after the workers comp policy expires, the business owner will receive a letter and some forms in the mail from his insurance company;
- The forms are included to make every ones job go easier, for the business owner it makes the gathering of the information easier, for the auditor it makes a crib sheet to follow and makes sure they gather all the info they need to complete the audit.
- The auditor then talks with the business owner by phone and secures the needed information.
- The auditor completes his worksheets and then sends them into the insurance company's audit department.
Sounds great right? Well maybe it's easy for everyone involved but we find telephone audits are ripe with errors, many times costing the business owner in additional cost for his workers compensation insurance. Why does this happen? A lot of important details are overlooked, changes in the business operation, reclassification of employees, misused and uncorrected class codes, misclassification of owners and uncorrected changes of ownership or entity. All of these can make significant differences in the workers comp premiums a business owner has to pay.
So, when presented with a telephone audit to complete...just be aware! Oh yea...not all telephone audits have errors. Many are found to be right on. But because of the method of gathering and verifying information many are also wrong!
Hope this helps you out! Thanks!
Thursday, March 25, 2010
The Ghost Policy - A Workers Compensation Sham!
What is a workers compensation ghost policy? Is it something you can see on the next episode of the "Ghost Whisperer?" Not really, read on!
A ghost policy is typically a workers compensation insurance policy sold by an insurance agent to a business owner, usually a contractor, who has no employees and has elected, if allowed to do so in his state, to not include himself within the policy coverage. Most times these policies are issued with one thing in mind:
Let me recap, a business owner buys a workers comp policy, has no employees and excludes himself from coverage....hummm, sooo....if no one is covered by the policy...why buy it? Usually so the business owner can give that certificate of insurance to someone he's working for. But wait a minute...there's no one covered by that insurance policy right? Right! So...the certificate of insurance is worthless, right? Right! Why do it? It's usually about the money.
Workers compensation insurance is expensive and the purchase of a "ghost policy" usually falls below the minimum premium charged by the insurance company or allowed by the state. Let's say the minimum premium is $900 and for the business owner to include himself within the coverage his premium would be $2,200....are you starting to get the picture?
So why is this such a bad thing? To start with, in my opinion, it's a sham! Employers who hire subcontractors to perform work for them will require the subcontractor to provide them with a certificate of insurance, proof that workers compensation coverage is in place. This is done to protect the general contractor or employer from work related exposures associated with injuries sustained by the subcontractor or his workers. In other words, if the subcontractors workers are injured on the general contractors job then the subcontractor's workers comp policy would take care of his workers. In absence of a valid workers comp policy, the general contractor may be responsible for the subcontractor's workers. Oh yea...the general contractors insurance company would also be happy to charge him for those workers comp exposures generated by the sub, whether a claim occurred or not!
So could that business owner who bought a workers compensation ghost policy but did not include himself in the coverage make a claim against the general contractors policy, yep.
There's plenty more on this topic...but for now lets just say a workers comp ghost policy is in no one's best interest!
Hope this helps you out!
A ghost policy is typically a workers compensation insurance policy sold by an insurance agent to a business owner, usually a contractor, who has no employees and has elected, if allowed to do so in his state, to not include himself within the policy coverage. Most times these policies are issued with one thing in mind:
- so the business owner can secure a certificate of insurance.
Let me recap, a business owner buys a workers comp policy, has no employees and excludes himself from coverage....hummm, sooo....if no one is covered by the policy...why buy it? Usually so the business owner can give that certificate of insurance to someone he's working for. But wait a minute...there's no one covered by that insurance policy right? Right! So...the certificate of insurance is worthless, right? Right! Why do it? It's usually about the money.
Workers compensation insurance is expensive and the purchase of a "ghost policy" usually falls below the minimum premium charged by the insurance company or allowed by the state. Let's say the minimum premium is $900 and for the business owner to include himself within the coverage his premium would be $2,200....are you starting to get the picture?
So why is this such a bad thing? To start with, in my opinion, it's a sham! Employers who hire subcontractors to perform work for them will require the subcontractor to provide them with a certificate of insurance, proof that workers compensation coverage is in place. This is done to protect the general contractor or employer from work related exposures associated with injuries sustained by the subcontractor or his workers. In other words, if the subcontractors workers are injured on the general contractors job then the subcontractor's workers comp policy would take care of his workers. In absence of a valid workers comp policy, the general contractor may be responsible for the subcontractor's workers. Oh yea...the general contractors insurance company would also be happy to charge him for those workers comp exposures generated by the sub, whether a claim occurred or not!
So could that business owner who bought a workers compensation ghost policy but did not include himself in the coverage make a claim against the general contractors policy, yep.
There's plenty more on this topic...but for now lets just say a workers comp ghost policy is in no one's best interest!
Hope this helps you out!
Wednesday, March 24, 2010
Employee or Independent Contractor - A Workers Compensation Issue
"I thought he was an independent contractor!" ...No, son, that's what they call an employee!
If you've been around the workers compensation business for a while employee or independent contractor is something you'll hear quite a bit. Whether it's done on purpose or an honest mistake the line between a legitimate independent contractor and employee may be blurred at best. Over the years I've worked with many clients who were caught in this workers comp trap. ....It could happen to you!
An example...Lets say you have an office based business, maybe you own an accounting firm, and have an individual come into your office several times a week after hours to clean, you know, empty trash, vacuum, dust, etc. You hired this person because they also clean you home and you like them cause they are trust worthy and do a good job. So, for workers compensation purposes are they an employee or independent contractor?
Another example...You own a successful floor covering store. Your employees conduct sales both on and off your premises and you have a office staff. You hire a handy man to do some repair work on the gutters on your building and he falls off his ladder breaking his arm. Employee or independent contractor?
You might be surprised at the answers and just how the answer might effect your workers compensation premium!
We'll continue with this topic a little later.
If you've been around the workers compensation business for a while employee or independent contractor is something you'll hear quite a bit. Whether it's done on purpose or an honest mistake the line between a legitimate independent contractor and employee may be blurred at best. Over the years I've worked with many clients who were caught in this workers comp trap. ....It could happen to you!
An example...Lets say you have an office based business, maybe you own an accounting firm, and have an individual come into your office several times a week after hours to clean, you know, empty trash, vacuum, dust, etc. You hired this person because they also clean you home and you like them cause they are trust worthy and do a good job. So, for workers compensation purposes are they an employee or independent contractor?
Another example...You own a successful floor covering store. Your employees conduct sales both on and off your premises and you have a office staff. You hire a handy man to do some repair work on the gutters on your building and he falls off his ladder breaking his arm. Employee or independent contractor?
You might be surprised at the answers and just how the answer might effect your workers compensation premium!
We'll continue with this topic a little later.
Tuesday, March 23, 2010
Misclassifying Workers - A Nebraska Workers Comp Problem
Things are still tough out there! With the economic down turn we are seeing more and more employers incorrectly classifying their employees as independent contractors or subcontractors instead of employees all in the hopes of reducing the cost of workers compensation, employee benefits, payroll taxes and unemployment insurance. This scary trend is rampant in the construction industry.
For workers compensation purposes, when an employer purposefully misclassifies an employee as an independent contractor they are trying to avoid paying workers compensation premium on that employee. By doing so, the employer would potentially save many thousands of dollars in workers comp premium. Unfortunately employers who practice this activity leave their workers exposed to uncovered on the job injuries. Leaving the employee's only recourse for compensation that of pursuing a legal outcome against the employer either through the state authority. through the courts or both. All flying against the basic reasoning for workers compensation protection, that of protecting the employee.
So here's the scoop...look for more individual state legislatures and the IRS to crack down hard on those employers who abuse the independent contractor/employee status. As a matter of fact, Nebraska has a current workers comp bill pending that, if passed, will impose heavy fines on employers who treat workers as independent contractors in violation of their states definition of an employee.
Yes it's tough out there, but congratulations to the State of Nebraska for their efforts in correcting this big workers compensation problem found in the construction industry!
Check out this link for more information on Nebraska Workers Compensation.
For workers compensation purposes, when an employer purposefully misclassifies an employee as an independent contractor they are trying to avoid paying workers compensation premium on that employee. By doing so, the employer would potentially save many thousands of dollars in workers comp premium. Unfortunately employers who practice this activity leave their workers exposed to uncovered on the job injuries. Leaving the employee's only recourse for compensation that of pursuing a legal outcome against the employer either through the state authority. through the courts or both. All flying against the basic reasoning for workers compensation protection, that of protecting the employee.
So here's the scoop...look for more individual state legislatures and the IRS to crack down hard on those employers who abuse the independent contractor/employee status. As a matter of fact, Nebraska has a current workers comp bill pending that, if passed, will impose heavy fines on employers who treat workers as independent contractors in violation of their states definition of an employee.
Yes it's tough out there, but congratulations to the State of Nebraska for their efforts in correcting this big workers compensation problem found in the construction industry!
Check out this link for more information on Nebraska Workers Compensation.
Thursday, November 5, 2009
Georgia Workers Comp Carrier Declared Insolvent
Georgia Workers Compensation insurance carrier, Southeastern US Insurance Company, has been declared insolvent. According to recent news out of Georgia, John Oxendine, the Georgia Insurance Commissioner, will act as the liquidator. This action has been approved by Fulton County Superior Court Judge Thomas Campbell.
It's estimated approximately 3,000 Georgia employers will be impacted by this action. Southeastern US Insurance Company specialized in providing workers compensation coverage to organizations like hospitals, associations, public entities and private companies alike and it was reported they were the eighth largest workers comp provider in the state of Georgia.
So as of October 27, 2009, the date Judge Campbell approved the liquidation, all business with Southeastern US Insurance Company was required to cease. For further information about this liquidation contact the Georgia Insurance Commissioners office. Also here is a link with information about this liquidation.
It's estimated approximately 3,000 Georgia employers will be impacted by this action. Southeastern US Insurance Company specialized in providing workers compensation coverage to organizations like hospitals, associations, public entities and private companies alike and it was reported they were the eighth largest workers comp provider in the state of Georgia.
So as of October 27, 2009, the date Judge Campbell approved the liquidation, all business with Southeastern US Insurance Company was required to cease. For further information about this liquidation contact the Georgia Insurance Commissioners office. Also here is a link with information about this liquidation.
North Carolina Workers Comp Rate Reduction
North Carolina Workers Compensation rates are going down! The North Carolina Rate Bureau sought and secured a workers comp rate reduction amounting to an average 10% reduction in workers comp rates for North Carolina employers. To take effect in April, this reduction will save employers an estimated $120 million and applies to employers who purchase their insurance coverage on the open market.
This news follows last years reduction which amounted to an approximately 4% savings for North Carolina employers.
Certainly a good trend in the cost of North Carolina workers comp insurance.
This news follows last years reduction which amounted to an approximately 4% savings for North Carolina employers.
Certainly a good trend in the cost of North Carolina workers comp insurance.
Wednesday, November 4, 2009
Tennessee Workers Comp - New Law for Contractors
Watch out when the government gets excited and tries to fix a problem! That's what's going on in the Tennessee Workers Compensation arena with a new law that was designed to level out the contractor playing field. This new law...to go into effect December 31, 2009, requires a sole proprietor to carry workers comp insurance. This law was originally intended to address the problem of workers comp stacking, where an employer would declare that their staff was in fact individual sole proprietors and fell outside the law requiring workers comp coverage be provided for all employees. In fact a poor attempt practiced by some contractors and used to skirt around the workers comp requirements that an employer provide coverage for their employees.
It's estimated that in this case the new law would force around 10,000 contractors to purchase workers compensation insurance! Wow! This couldn't have come at a worst time! Many of the small single owner operator contractors would be forced to purchase a policy potentially costing thousands of dollars!
So the good news....Tennessee State Lawmakers are reviewing the law trying to find a way to reduce the negative effect. However, this may take some time to work its way out and in the mean time December 31, 2009 is ticking closer and closer!
So if you are a contractor in the State of Tennessee, make sure you are compliant with the new state workers comp law!
It's estimated that in this case the new law would force around 10,000 contractors to purchase workers compensation insurance! Wow! This couldn't have come at a worst time! Many of the small single owner operator contractors would be forced to purchase a policy potentially costing thousands of dollars!
So the good news....Tennessee State Lawmakers are reviewing the law trying to find a way to reduce the negative effect. However, this may take some time to work its way out and in the mean time December 31, 2009 is ticking closer and closer!
So if you are a contractor in the State of Tennessee, make sure you are compliant with the new state workers comp law!
Friday, October 30, 2009
Florida Work Comp Rates Down 6.8%
Good news for Florida Workers Compensation?? We'll have to wait and see!!
Recently the Florida Insurance Commissioner, Kevin McCarty, gave final approval to NCCI's amended workers comp rate filing. New Florida workers comp rates will be effective January 1, 2010 with an overall 6.8% decrease.
So here's the real news...with this rate decrease, Florida has experienced an overall decrease in rates totaling more than 63% since 2003! Isn't that a good thing for employers?
Along with this news of course come comments from those who think this action will lead to the ruination of Florida workers comp system. Some are saying these rate decreases are artificial, just a function of government with decisions made without regard of increased loss ratios and costs and decreasing income and profits for the insurance companies. That many of the Florida workers comp carriers are in a pickle and that a big shake out is just a short walk down the road. We'll just have to wait this out and see!
Recently the Florida Insurance Commissioner, Kevin McCarty, gave final approval to NCCI's amended workers comp rate filing. New Florida workers comp rates will be effective January 1, 2010 with an overall 6.8% decrease.
So here's the real news...with this rate decrease, Florida has experienced an overall decrease in rates totaling more than 63% since 2003! Isn't that a good thing for employers?
Along with this news of course come comments from those who think this action will lead to the ruination of Florida workers comp system. Some are saying these rate decreases are artificial, just a function of government with decisions made without regard of increased loss ratios and costs and decreasing income and profits for the insurance companies. That many of the Florida workers comp carriers are in a pickle and that a big shake out is just a short walk down the road. We'll just have to wait this out and see!
Sunday, July 26, 2009
Employers Direct Insurance Company Leaving California
Holy Cow! What happens to Employers Direct Insurance Company policyholders who bought workers comp insurance from this company now that they've decided to stop writing workers comp in California? Check here for answers to your workers compensation questions.
Employers Direct Insurance Company is a workers comp insurance carrier who does business in California, Illinois, Idaho, Colorado, Arizona, Nevada, Oregon and Utah. They are famous for writing workers compensation insurance directly to employers without going through a broker. Usually companies like this sell workers comp at rock bottom prices relying on the lowest price as the attraction for employers to do business with them. Employers Direct has decided to leave the California workers compensation market by not writing any new business in the state. This after they announced earlier a request to California for about a 39% rate increase. Company officials have indicated that they will continue to service existing customers.
Unfortunately you can expect to see more companies following their example, given the poor workers compensation environment in California.
Employers Direct Insurance Company is a workers comp insurance carrier who does business in California, Illinois, Idaho, Colorado, Arizona, Nevada, Oregon and Utah. They are famous for writing workers compensation insurance directly to employers without going through a broker. Usually companies like this sell workers comp at rock bottom prices relying on the lowest price as the attraction for employers to do business with them. Employers Direct has decided to leave the California workers compensation market by not writing any new business in the state. This after they announced earlier a request to California for about a 39% rate increase. Company officials have indicated that they will continue to service existing customers.
Unfortunately you can expect to see more companies following their example, given the poor workers compensation environment in California.
Thursday, July 23, 2009
Establish Work Comp Code Procedures For Your Business
Learn how to prepare for a work comp audit. Proper preparation to an upcoming audit may just ward off a ton of bad stuff later.
It's not hard to find an insurance professional, fluent in the language of workers compensation, that can help you prepare for a workers comp audit. When an employer goes through the audit process unprepared, they are asking for nothing but trouble. Turn to the Internet for help! Just Google "workers compensation consultant" and you'll find quite a few folks out there who all have good opinions on the best way to prepare for an audit. You'll find most of the suggestions are very common sense. Things like having your payroll records handy for the auditor. But there are several other items you should be aware.
One of the most important things you can do for your business is to establish a workers comp code procedure. A workers comp code procedure, once properly established, will help your company prepare ahead for dealing with workers comp premium issues. You may need help doing this especially if your business operates in more than one state and involves non-NCCI advisory authorities.
For help with these workers compensation issues contact Workers Compensation Consultants!
It's not hard to find an insurance professional, fluent in the language of workers compensation, that can help you prepare for a workers comp audit. When an employer goes through the audit process unprepared, they are asking for nothing but trouble. Turn to the Internet for help! Just Google "workers compensation consultant" and you'll find quite a few folks out there who all have good opinions on the best way to prepare for an audit. You'll find most of the suggestions are very common sense. Things like having your payroll records handy for the auditor. But there are several other items you should be aware.
One of the most important things you can do for your business is to establish a workers comp code procedure. A workers comp code procedure, once properly established, will help your company prepare ahead for dealing with workers comp premium issues. You may need help doing this especially if your business operates in more than one state and involves non-NCCI advisory authorities.
For help with these workers compensation issues contact Workers Compensation Consultants!
Wednesday, July 22, 2009
Workers Compensation Premium Review
Do you need a workers comp premium review? YES!!!
If you are an employer, in any state, and have a workers compensation insurance policy then YOU NEED A WORKERS COMP PREMIUM REVIEW!! You might just be wondering why?
Simple, insurance companies make premium mistakes on workers comp policies EVERY DAY! (kinda sounds like I'm worked up..) It's just amazing the amount of overcharged premium dollars that employers pay and pay and pay and don't bother to speak the simple word why, why, why do I seem to be paying so much more for workers comp than my friend in the same business down the street? Why do my workers comp premiums just keep going up? Why do I get hit with large audits each and every year?
Here's what I'm told: "But I thought my agent was taking care of me!"
I usually hear that after a workers comp premium review has discovered mistakes and identified overcharges the client has been paying to the insurance company for years!
So, learn this, mistakes are made every day, don't be a victim and pay more for workers compensation insurance than you need. Have a workers comp premium review completed today! Reviews shouldn't cost you a penny unless the work comp consulting company can get your money back. Then you share with them. It's like a windfall for the employer. The employer gets money back they didn't even know was out there!! Check with Workers Compensation Consultants, they can help.
If you are an employer, in any state, and have a workers compensation insurance policy then YOU NEED A WORKERS COMP PREMIUM REVIEW!! You might just be wondering why?
Simple, insurance companies make premium mistakes on workers comp policies EVERY DAY! (kinda sounds like I'm worked up..) It's just amazing the amount of overcharged premium dollars that employers pay and pay and pay and don't bother to speak the simple word why, why, why do I seem to be paying so much more for workers comp than my friend in the same business down the street? Why do my workers comp premiums just keep going up? Why do I get hit with large audits each and every year?
Here's what I'm told: "But I thought my agent was taking care of me!"
I usually hear that after a workers comp premium review has discovered mistakes and identified overcharges the client has been paying to the insurance company for years!
So, learn this, mistakes are made every day, don't be a victim and pay more for workers compensation insurance than you need. Have a workers comp premium review completed today! Reviews shouldn't cost you a penny unless the work comp consulting company can get your money back. Then you share with them. It's like a windfall for the employer. The employer gets money back they didn't even know was out there!! Check with Workers Compensation Consultants, they can help.
Friday, July 17, 2009
Premium Recovery
What is Premium Recovery? Premium Recovery is when you have unknowingly overpaid insurance premiums and have an independent firm work on your behalf to get that overpaid premium back in your pocket! Check with Workers Compensation Consultants, a professional workers compensation consulting firm who specializes in premium recovery. You'll find there are many companies who work in the field of premium recovery. All you have to do is check out the web and you'll understand. When looking for someone to help with this problem it's best to seek out those who have insurance experience. While many firms are rooted in accounting, you'll find those with the insurance knowledge and experience are the ones who can help you the most.
So if you think you need help recovering overpaid premiums on your workers compensation policies or other insurance policies be sure to contact Workers Compensation Consultants. They can do the job for you!
So if you think you need help recovering overpaid premiums on your workers compensation policies or other insurance policies be sure to contact Workers Compensation Consultants. They can do the job for you!
Tuesday, July 14, 2009
Workers Compensation Policy and Code Review!
How many times do I have to remind you to have your workers compensation policy reviewed! A work comp policy review should include; a review of your workers compensation codes, a review of all premium calculations on your policy, a review of your audits, a review of your experience modification and other premium factors, a review of all credits applied to your policy and a review of proper application of payroll limitations.
I've recently been asked by several new clients to review their policies and have found errors in each. Errors that have cost these employers several thousands of dollars! We've been successful in recovering most of the overpaid premium however this all could have been avoided if these clients had called earlier and allowed us to set up an annual review of their policies. So, don't forget, be PROACTIVE! Have your workers compensation policies reviewed!
I've recently been asked by several new clients to review their policies and have found errors in each. Errors that have cost these employers several thousands of dollars! We've been successful in recovering most of the overpaid premium however this all could have been avoided if these clients had called earlier and allowed us to set up an annual review of their policies. So, don't forget, be PROACTIVE! Have your workers compensation policies reviewed!
Monday, July 13, 2009
Vermont Workers Compensation Rates
Great news for Vermont employers! Vermont Workers Compensation rates are heading down! Recent news indicates NCCI, the National Council on Compensation Insurance an advisory organization, has recommended a 13% roll back in rates for Vermont employers. When asked why the improvement, reduced claims are cited as the reason. There you go. Less claims dollars paid usually equates to lower rates. Of course the suggestion by NCCI to roll back rates 13% must be approved by Vermont authorities before put into action. Oh yea, that 13% roll back is also the suggested average rate roll back. In truth not all class codes will experience a reduction, some classes may see increases while others may see reductions...keep in mind this will be an average reduction.
Way to go Vermont employers! Doing everything you can to keep workers compensation costs in check!
Thanks
Way to go Vermont employers! Doing everything you can to keep workers compensation costs in check!
Thanks
Friday, July 10, 2009
West Virginia Workers Compensation Options Now Available
About a year after West Virginia Workers Compensation moved from being one of the few remaining monopolistic states to an open market it is being reported that out of the 198 insurance companies that filed to do business in the state somewhere around 150 now have active policies. Seems like a good sign for the future success of the West Virginia workers comp market. Evidently these companies have decided that the workers comp environment is one in which they can make money. I say good for West Virginia! Open competition for a product like workers comp is the only way to go! It is a new day for the employers in this state who now have options when it comes to securing workers compensation insurance coverage.
If you need help with workers compensation problems in West Virginia be sure to check with Workers Compensation Consultants, a professional workers comp consulting firm.
Thanks!
If you need help with workers compensation problems in West Virginia be sure to check with Workers Compensation Consultants, a professional workers comp consulting firm.
Thanks!
Wednesday, June 17, 2009
Preparing for a Workers Compensation Audit
What a scary thought, an auditor visiting your office! Don't be afraid, be prepared! Check out How To Prepare For A Workers Comp Audit for FREE detailed information on how to prepare for a workers comp audit!
Getting ready for the work comp auditor can be stressful. But it's a process of necessity. The audit process is the time when all workers compensation accounts are brought to balance. You see, when you buy a workers comp insurance policy, the premium you pay is really just a deposit premium, based on the projected payroll of your business for the next 12 months. Then at the end of the policy period, 12 months, the insurance company will perform an audit on your books to determine just what your actual payroll was then recalculate your premium and adjust out if they owe you money back or bill you if you owe them more money. Simple!
Well it's really quite complicated. So be sure to check out the web page "How to Prepare for an Audit" that's shown above. You'll find some good tips in there that will help make your visit with the auditor a more pleasant experience!
Thanks!
Getting ready for the work comp auditor can be stressful. But it's a process of necessity. The audit process is the time when all workers compensation accounts are brought to balance. You see, when you buy a workers comp insurance policy, the premium you pay is really just a deposit premium, based on the projected payroll of your business for the next 12 months. Then at the end of the policy period, 12 months, the insurance company will perform an audit on your books to determine just what your actual payroll was then recalculate your premium and adjust out if they owe you money back or bill you if you owe them more money. Simple!
Well it's really quite complicated. So be sure to check out the web page "How to Prepare for an Audit" that's shown above. You'll find some good tips in there that will help make your visit with the auditor a more pleasant experience!
Thanks!
Tuesday, June 9, 2009
Workers Compensation Premiums Going Up
Workers compensation premiums are going up! You can learn more about workers compensation insurance issues at Workers Compensation Consultants, a professional work comp consulting firm providing a ton of free, useful information on the web.
Workers compensation insurance is sometimes a strange product. Just when I think I know most things there are to know about workers comp I'm presented with something new! So try this on for size...In general workers compensation claims have been trending down over the past years. This improvement is due to a combination of many things including a toughing of state regulations that have had a positive impact on workers comp and to an overall improvement of safety in the workplace.
So with the number of claims trending lower why are we seeing increases in rates and a general increase in the cost of workers comp? Well there are two basic items that drive the cost of workers compensation claims, medical and indemnity. Indemnity refers to the replacement of lost wages when an injured worker is off from work. Logically with fewer claims the indemnity cost would also be lower. So that leaves the medical. Medical is just what you think it is, the cost to pay medical providers for their services. Unfortunately the trend is that medical costs are going up! You know, it's the same story effecting health insurance in this country. Better improved medical services, additional costs. Oh, yea, don't forget when a medical provider has fewer cases to work on and they still need to have a certain flow of revenue to keep their doors open. They wouldn't charge more for their services would they? Less number of people to work on equates to charging more for those folks who need work performed!
Well, there you have it, the number of workers compensation claims are improving. Employers are doing what they have been asked by implementing safety programs, return to work programs, and providing much safer work environments, reducing the number of workers compensation claims. And the payoff...higher workers compensation premiums!
Thanks!
Workers compensation insurance is sometimes a strange product. Just when I think I know most things there are to know about workers comp I'm presented with something new! So try this on for size...In general workers compensation claims have been trending down over the past years. This improvement is due to a combination of many things including a toughing of state regulations that have had a positive impact on workers comp and to an overall improvement of safety in the workplace.
So with the number of claims trending lower why are we seeing increases in rates and a general increase in the cost of workers comp? Well there are two basic items that drive the cost of workers compensation claims, medical and indemnity. Indemnity refers to the replacement of lost wages when an injured worker is off from work. Logically with fewer claims the indemnity cost would also be lower. So that leaves the medical. Medical is just what you think it is, the cost to pay medical providers for their services. Unfortunately the trend is that medical costs are going up! You know, it's the same story effecting health insurance in this country. Better improved medical services, additional costs. Oh, yea, don't forget when a medical provider has fewer cases to work on and they still need to have a certain flow of revenue to keep their doors open. They wouldn't charge more for their services would they? Less number of people to work on equates to charging more for those folks who need work performed!
Well, there you have it, the number of workers compensation claims are improving. Employers are doing what they have been asked by implementing safety programs, return to work programs, and providing much safer work environments, reducing the number of workers compensation claims. And the payoff...higher workers compensation premiums!
Thanks!
Monday, June 1, 2009
Insurance Certificate Problems and Information
Check out the new information about insurance certificates at Workers Compensation Consultants website for a lot of free helpful information on this topic.
When is the last time someone asked your business for a certificate of insurance or an insurance certificate? Well if you're in some type of contracting business I'll bet it was just a matter of minutes ago! Yep, insurance certificates seem to make the world of contracting go round!
A few things about certificates:
1. They are basically worthless pieces of paper, have you ever been charged for a certificate? So they are really worth what you pay;
2. They are for informational purposes only;
3. They are the most confusing piece of paper in the insurance world;
4. Most people asking for them don't know why they are asking;
5. Most people giving them out don't know why they are giving them;
6. Everybody thinks they provide some type of coverage or at least assurance, in fact they don't;
So, if some other business asks you about certificates of insurance or needs proof of workers compensation insurance or needs an insurance certificate showing you carry workers comp, read up on what it's all about at Workers Compensation Consultants before you're so fast to send one out!
Thanks!
When is the last time someone asked your business for a certificate of insurance or an insurance certificate? Well if you're in some type of contracting business I'll bet it was just a matter of minutes ago! Yep, insurance certificates seem to make the world of contracting go round!
A few things about certificates:
1. They are basically worthless pieces of paper, have you ever been charged for a certificate? So they are really worth what you pay;
2. They are for informational purposes only;
3. They are the most confusing piece of paper in the insurance world;
4. Most people asking for them don't know why they are asking;
5. Most people giving them out don't know why they are giving them;
6. Everybody thinks they provide some type of coverage or at least assurance, in fact they don't;
So, if some other business asks you about certificates of insurance or needs proof of workers compensation insurance or needs an insurance certificate showing you carry workers comp, read up on what it's all about at Workers Compensation Consultants before you're so fast to send one out!
Thanks!
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