Before we get started, how would you like to be in a Workers’ Compensation plan where the rates are great, at the start employees get classified properly, contractors can split field weekly payrolls by class code, payroll caps are automatically applied, where you pay premium based on current payroll figures and that doesn’t audit you every year or maybe ever? Call 914-806-5853 to learn how!
No company owner wants to undergo a workers’ compensation audit, but they are a fact of life if you run a business and have employees.
Unfortunately, many audits don’t go smoothly and sometimes your insurer may make mistakes. And sometimes the mistakes can be in the tens, hundreds of thousands of dollars and you get told, pay or and because the number is so ridiculous you get cancelled.
Below we are highlighting 10 common problems faced by business owners and THEN OFFERING YOU A SOLUTION!
Wrong class code – Misapplication of job classifications occurs in many workers’ comp audits. With hundreds of job classes to choose from, mistakes can happen.
X-Mod is changed – After your insurer finishes the audit, it will use the information to calculate your premium. When that happens, it has to include your X-Mod to get the right rate. But sometimes the insurer may use an incorrect X-Mod.
Subcontractors are counted – Sometimes insurers will include subcontractors as employees, which results in a new audit bill to account for the additional “employees.” But if they are genuine subcontractors, they should not be counted. Often, uninsured contractors that have insurance will be included as employees. Often it takes hours on the phone and months of waiting before these charges are removed. The problem is if you are billed tens, hundreds of thousands for subs that have insurance but your company says they don’t you have to pay whats billed or be cancelled. We have a better way.
Disappearing credits – Most policies will have some sort of premium credits or other modifiers. Sometimes during audits, the insurer will remove them when recalculating the premium they think you owe. Watch out for missing credits and other modifiers if you get an audit bill, like:
- Premium discount
- Schedule credits
- Deductible credits
- State-specific credits
Audit worksheets missing – If the auditor fails to provide you with audit worksheets, which are used to compile your payroll and other audit information, you should ask to check their work. They will provide you with the information you need to carry out such a check.
Your rates changed – The rates you are charged at the beginning of your policy period must remain the same for the entire policy period. If your base rates have changed, the insurer may have made a mistake.
Separation of payroll – Depending on your industry, you may or may not be able to split your employees’ payroll between job classifications (like cabinet installers and sheetrock hangers). This is a pinch point when errors can occur. If the auditor says you are not allowed to split job classifications even though you have in the past, your audit may be in error. We have a better way!
Unexpected large premium due – If you get a significant bill for your insurance company after your audit, the auditor may have made mistakes, particularly if you know that your employment has remained relatively stable and you’ve had no significant claims, if any. If it seems out of whack, it probably is. We have a better way!
Payroll data doesn’t match – If there is a discrepancy between your payroll data and what you see on the audit, a mistake may have been made. Try to match the payroll on the audit with that generated from your accountant. If the insurer made a mistake, you could end up paying for phantom payroll numbers. And there are insurers that when they do not believe your numbers create phantom payroll.
No physical audit – There are three types of audits:
- Mail audit
- Phone audit, and
- Physical audit
The mail and phone audits are prone to errors since neither you nor your staff likely have any experience in premium auditing. If you have a big bill after a mail or phone audit, mistakes could have been made.
Solution: How would you like to be in a Workers’ Compensation plan where the rates are great, at the start employees get classified properly, contractors can split field weekly payrolls by class code, applies payroll caps, where you pay premium based on current payroll figures and that doesn’t audit you every year or maybe ever?
BGES Group are Workers’ Compensation Specialists and depending on what you want we can help you get it. Cal Gary Wallach at 914-806-5853 and receive help immediately!
BGES Group’s office, located in Larchmont, NY is a full service insurance agency offering, Property, Liability, Umbrella Liability, Business Auto, Bid & Performance Bonds, Inland Marine, Worker’s Compensation, New York State Disability, Group Health, Life insurance, Personal lines and Identity Theft.
BGES Group are Worker’s Compensation Specialists for the States of New York, New Jersey and Connecticut – Issues we address: 1) Lowering pricing – we have specialty programs that can save you up to 40%; 2) Finding a new company; 3) Being cancelled or non renewed; 4) Audit disputes; 5) Company creating fictitious payroll at audit time; 6) Lowering high experience modifications factors; 7) Misclassification of payrolls; 8) Lowering or eliminating renewal deposits; 9) Getting coverage when you’ve been without for a few months; 10) Covering multiple states under one policy; 11) Eliminating 10% service or policy fees; 12) Timely issuance of certificates; 13) Always being able to get someone on the phone or by email when you need to.
Special Contractor Insurance Programs (NY) – We we have 50 insurance companies to market your general liability, umbrella liability, business auto, workers compensation, bid & performance bonds and group health coverages. We help contractors set up proper risk transfer mechanisms. If you’re a contractor we offer extensive information about insurance markets, coverages, risk transfer mechanisms, subcontractor screening, ways to lower your insurance costs that lower them.
New Jersey and Connecticut Contractors: We have a competitively priced (savings up to 50%) General Liability, Umbrella Liability, Business Auto, Workers Compensation program. Want to lower these costs? Get a quote today!
Identity Theft – Over the past year hundreds of thousands of people have had to deal with identity theft. This has become such a huge problem so we now offer Identity Theft Protection. We heard stories of kids going for car loans and learning they owe $200,000+ to companies they never heard of. Under our program you can protect yourself, spouse and children. Anyone you know can purchase this protection though our plan! Click here to learn more or sign up.
Company: BGES Group, 216A Larchmont Acres West, Larchmont, NY 10538
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