What Can Your Company Do To Immediately Lower Your Workers Compensation Premiums?

Updated: October 21, 2009

This is probably the question that I am asked most often at presentations, conferences, and meetings.

There is no "quick fix" for your Workers Comp premiums. Reducing your companies premiums takes at least three years of constant effort. As Workers Comp is on more of a delayed system, anything that reduces the reserves will not show up in your premiums until two policy years later.

Another way to quickly reduce premiums is to heavily review your Workers Comp premium audits. We have seen companies just write checks without questioning the premium audits. If there is something that does not look or feel right, you have the right to have the audit explained to you in detail by the auditor including classification codes, payroll (remuneration), and any other areas of the audit

,

One area that most companies do not attempt to question is their Workers Comp loss runs. If you are not receiving your loss runs monthly, call your agent, or insurance carrier and ask to receive them monthly. Most insurance carriers will offer to send them quarterly, but you need to review them monthly for changes in reserves. Having online access to your claims info is critical. When shopping for a carrier to renew with, ask that your agent inquire to see if the company she/he recommends has online access to your claims.

Even with all the technology that is in place, there are a few carriers that do not allow access to your claims info. Having this access may be worth paying a little extra over the lowest-priced carrier. This will also save your company a large amount of $ if you decide to have a company such as ours to review your claims. Most companies that allow online access will have a place for status updates. Those are golden as you can review those quickly to have an idea of how the claim is progressing. If you do not agree with or have questions on the loss runs, you should email (not call) the adjusters that are on the files.

Questioning everything that comes across your desk in relation to your Workers Comp policies is always the best thing for reducing your Workers Compensation premiums.

This is probably the question that I am asked most often at presentations, conferences, and meetings.

There is no "quick fix" for your Workers Comp premiums. Reducing your companies premiums takes at least three years of constant effort. As Workers Comp is on more of a delayed system, anything that reduces the reserves will not show up in your premiums until two policy years later.

Another way to quickly reduce premiums is to heavily review your Workers Comp premium audits. We have seen companies just write checks without questioning the premium audits. If there is something that does not look or feel right, you have the right to have the audit explained to you in detail by the auditor including classification codes, payroll (remuneration), and any other areas of the audit

,

One area that most companies do not attempt to question is their Workers Comp loss runs. If you are not receiving your loss runs monthly, call your agent, or insurance carrier and ask to receive them monthly. Most insurance carriers will offer to send them quarterly, but you need to review them monthly for changes in reserves. Having online access to your claims info is critical. When shopping for a carrier to renew with, ask that your agent inquire to see if the company she/he recommends has online access to your claims.

Even with all the technology that is in place, there are a few carriers that do not allow access to your claims info. Having this access may be worth paying a little extra over the lowest-priced carrier. This will also save your company a large amount of $ if you decide to have a company such as ours to review your claims. Most companies that allow online access will have a place for status updates. Those are golden as you can review those quickly to have an idea of how the claim is progressing. If you do not agree with or have questions on the loss runs, you should email (not call) the adjusters that are on the files.

Questioning everything that comes across your desk in relation to your Workers Comp policies is always the best thing for reducing your Workers Compensation premiums.

Featured Research
  • What You Need to Know About VoIP Security

    No matter the industry or area of expertise, a strong VoIP system is the perfect tool for any business looking to take both its internal and external communication to the next level. more

  • Are You Using These 5 VoIP Features?

    In large part, the success of your business depends on the strength and reliability of your team’s many communication networks—this includes your Voice over Internet Protocol system (VoIP). more

  • Video Conferencing Best Practices

    Video conferencing is quickly becoming one of the most important communication channels for both small and big businesses. As more businesses turn to this technology, expectations about the experience are also rising. It’s not enough to just offer video conferencing as a communication method. You also need to meet minimum audio and visual standards, and there’s even proper etiquette to consider. more

  • 10 Contact Center Myths Busted

    For most forward-thinking companies, the use of contact center software is on the rise. That said, in spite of contact center software’s sudden rise in popularity, a number of myths have begun to take shape. more

  • Go Mobile and Increase Employee Productivity

    The Bring Your Own Device (BYOD) and Voice over Internet Protocol (VoIP) tech trends now allow people to work whenever, wherever, and however they want—mobility makes it happen. more