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
  • EHR Implementation

    More and more medical practices are selecting and implementing electronic health records (EHR) than ever before. In fact, statistics show that the number of practices who have purchased an EHR has doubled in just three years. That being said, many practices fail to prepare for their new EHR and thus do not gain the full benefits that come with implementing a solution. more

  • Selecting the Right EHR for Your Practice

    The purchase and implementation of an electronic health record (EHR) system is no small feat and is a big step for a practice, small or large, to take. Selecting your new EHR is one of the most important decisions that you will make for your practice. more

  • 8 Ways Business Travelers Can Save with VoIP

    Do you or any part of your workforce travel for work, or even telecommute? If that answer is yes, then you should be utilizing mobile VoIP. With VoIP, businesses have been found to save as much as 40% on local calls and a whopping 90% on international calling expenses. more

  • Top 10 Contact Center Tools for an Unforgettable Customer Experience

    It should come as no surprise that consumers have only increasingly become less and less brand loyal in the modern age. In fact, 89% of them have switched brands within the last year due to a poor customer experience. One of the major steps to preventing this customer churn is to invest and invest heavily into improving your customers' experience. Now the major question to ask yourself is, "of all the contact center tools available, what are the ones that I should be utilizing for my business?" more

  • The Future of ERP

    Today's business decisions are data-driven and the difference between success and failure can be boiled down to utilizing the correct data. Now more than ever, companies have access to not only robust data but consumable data as well, through Enterprise Resource Planning (ERP) software. more