Simploy Testimonial
Simploy Testimonial
Workers' Compensation Insurance
Premium Audit Specialists
Featured In
Workers Comp Premium Audit
Give Us 14 Days And Zero Dollars
We know nobody wants to gift free money to their insurance company.
So, correcting errors, recovering overcharges, and obtaining credits are performed as expeditiously as possible.
2 weeks (or less) is all it takes for us to review your account and let you know:
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What errors your insurance company or the rating bureau have made
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Our plan to obtain corrections and how long it will take
Once we receive the documents needed to build our file on your work comp program, 2 weeks is all we need to complete an audit analysis.
Workers Comp Premium Audit & Performance-Based Pricing
Performance-Based Pricing (contingent fee, value-based) means you have no risk in engaging our services. You will not receive an invoice from us until you have received a refund check or credit to your payment plan.
No refund, no fee.
Work Comp Audit errors and overcharges are so numerous we have found we can easily afford this value proposition. Also, it keeps us up burning the midnight oil (motivated) to help you win!
The Workers Comp Premium Audit
Unlike your annual Work Comp Audit, a Work Comp Premium Audit conducted by CG is an expert, 3rd party audit. And, we represent you. Our job is to help you save money, fix rating errors, and recover overpayments.
We audit "premium;" money charged to and paid by you.
If you look at the Workers Compensation Premium Audit For Business graphic to the right, you'll see all of the activities our independent Work Comp Premium Audit will conduct on your behalf. And, as your premium auditor, we possess an expertise in all of the areas.
Take just the issue of proper classification of your employees. Unlike your Work Comp Audit, your we will scour the Scopes (Classification Codes) Manual for the lowest rated (least expensive) code that properly classifies your business. We'll review state exceptions and constantly review the manuals for updates, additions, deletions, etc.
And that's just one of the elements that contributes to your annual workers comp premiums.
The Work Comp Audit (Insurance Carrier Performed)
A Work Comp Audit performed by your Workers Compensation Insurance company may not be what you think it is. In fact, we are sure that many are confused about the purpose of this annual audit.
Why? Because we've been told by business leaders that they don't need an audit (workers comp premium audit) because "our workers compensation insurance company does this for free!"
The purpose of the Work Comp Audit, performed by your insurance company, after policy expiration is to "true up" payroll estimates from the beginning of your policy with your actual, audited payroll figures. Then, you are billed a Final Audit Invoice for the year.
To a lesser extent your Work Comp Audit verifies classification codes, but not in an attempt to save you money. The insurance company auditor may check claims to see if accident details correspond to the classification of the injured worker. For example, if a claim was filed because an employee who is classified as 8810 Clerical fell off a ladder, an auditor might make a referral to have the employee reclassified since the accident indicates she's obviously not a clerical worker. This costs you more money.
Insurance Companies Do Not Perform a
Work Comp Audit To Help You Pay Them Less
So, if you look at the Premium Audit graphic again, you could say that the insurance company Work Comp Audit performs the first 2 activities listed. But, you can be sure that your insurance company is not thoroughly reviewing manuals for lower-rated class codes that could apply or additional payroll credits that could apply. They are looking for additional premium not reduced premium.
The Work Comp Premium Audit - Experience Modification Rate
A Workers Compensation Premium Audit will include an exhaustive review of your Experience Modification Rate. And, this can be a significant project unto itself depending on your claims activity and the size of your organization.
There is a lot of information on this website about the Experience Modification Rating so I will encourage you look at some of those posts. But, keep in mind that some of our engagements are simply to review a company's Experience Modification Rating because it's so important to either or both pricing and revenues.
Turnkey Audit Process To Maximize Your Results And Optimize Your Time
An exhaustive review of your Workers Comp Insurance program is a time intensive project. Auditing your Experience Modifier Worksheet can be a significant project unto itself depending on your claims activity and the size of your organization.
We know of nobody with the time or expertise to expertly audit your work comp premiums other than those of us who perform Workers' Compensation Premium Audits for a living. Decades of experience is why some of our business includes expert witness testimony.
We have a turnkey audit process that allows you to stay focused on your role while we save you money.
Review Historical Work Comp Audits For Errors And Overcharges
Language in your Workers Compensation Insurance Policy allows for a reaudit of your Work Comp Audit up to 3 years from the expiration date. So, when you engage CG as your Work Comp Premium Auditor our review will include your current and prior 3 policies; 4 year's worth of premiums! When errors are found that occur every year the compounding can create substantial returns to a business.
What Are The Most Common Red Flags Or Warning Signs That I Have Overpaid?
Keep in mind that some of our most successful premium audits were performed for clients who had not identified a particular problem or "pain point" with respect to workers' compensation insurance costs (other than it's really expensive). They just felt that it was wise, as a matter of performing due diligence, to have an expert review their program, and the decision really paid off (literally and figuratively). With that said here are some issues that should cause some concern.
Warning signs from your audit
•Your final audit contains classifications that are different from your policy.
•You did not get a copy of your auditor's worksheets.
•You received a large additional premium or return premium (you may have been entitled to more).
•The audit was conducted on a quarterly basis using the 941s or State Unemployment returns.
•Your audit was conducted more than 120 days after expiration.
• Your audit was conducted via mail or telephone.
Warning signs from your workers comp insurance policy
•Your policy was endorsed mid-term to increase your premium.
•Credits that you once received have been revoked or reduced on your current policy.
•Your policy does not use at least 4 classifications.
• Your policy was cancelled or rewritten with a different effective date.
• You have a minimum premium policy and have no employees or payroll.
• Your policy contains an ARAP surcharge.
Other important warning signs
•You pay $75,000 to $1,000,000 per year in work comp premiums and you have not had an independent premium review in the last 3 years.
•Your insurance company reclassified a large group of employees.
•You have never reviewed NCCI's Scopes Manual for new codes.
•Your experience modification has been increased during the policy period.
• Previously open claims have been denied by official rulings.
• The insurance company has changed your basic classification.
• Your state implemented a rate change.
• You have had an NCCI or Bureau inspection which resulted in a higher rated classification being added to your policy.
• Your general liability policy is "composite rated" on payroll.
• Your classification includes the words "all employees."
• You are an executive officer of the corporation and your wages were assigned to a high rated classification.
Warning signs for contractors
•You're a contractor involved in several types of work.
•You're a contractor involved in wrap-up/OCIP construction projects.
•Charges were made for subcontractors or owner-operators.
Stuart Cytron ● stuart@cytrongroup.com ● 314.757.8079 ● Sitemap