3 out of 4 businesses are being overcharged 5% to 15% or more on their Workers Compensation Premiums due to errors & omissions, inaccurate data and miscalculations. When combined with our 5-year analysis, recovery can net between 25%-75% of an annual premium!
PRS will perform an extensive and technical 21 point review of up to 5-years’ worth of policy and claim data to find errors. Errors occur due to incorrect information, oversight or a lack of understanding (of rules and regulations) on the part of your carrier or broker.
A reduction in your ex-mod rate, even a small one, can equate to future discounts, a large refund and lower premium payments going forward. The following factors could be affecting your workers’ compensation premiums:
Errors and Omissions
There are often improperly stated claims, clerical errors, a change in the severity of a claim that can impact your records and ex-mod ratings.
Make certain your company is coded appropriately to correspond with your specific industry and operation, including available exclusions and individual job classifications. In addition, many of our recoveries are as a result of erroneous payroll data from the employer, applied incorrectly by the carrier or WCIRB.
Review Loss Runs
Going back 3 years or more, we analyze the frequency and severity of your past claims, ensure each claim is reported and/or closed properly, then correct/update the claim information accordingly and work with the carrier to finalize the change(s) with the state’s workers’ compensation bureau.
It can take years to report and recover losses when a 3rd party is responsible for an injury or claim. Failure to identify potential subrogation is a missed opportunity to recover claims costs that directly impacts premium rates.
A successful case study
Colony West is pleased to announce another successful premium audit! During our extensive and technical 21 point review, we discovered this particular staffing company could benefit from a reclassification of their payroll.
One of the primary components of the rate businesses pay for workers’ compensation insurance is determined by the classification code(s) assigned to payroll levels (according to industry and/or operations). Premium rates for the classification reflect the average anticipated cost of benefits due to work-related injuries, incurred by businesses within that particular industry.
Reclassification of payroll is NOT an easy process — essentially, it required our team to “dig in” for a long period of negotiations as we hashed out technical details with the carrier. It took 6 months, from the time the client signed the contract until the carrier submitted, but in the end we earned the client a $121,000 premium credit on payments going forward. That’s equal to ½ of the customer’s $240,000 premium!
We will continue auditing this company’s other policy years and we expect to recover about the same percentage for preceding years.< Back To The Services Page
We can help you find out if you’re overpaying and do a comprehensive audit to find out what you’re missing. Let’s chat!