In the fast-paced construction industry, New York contractors face a multitude of challenges, with high workers’ compensation premiums being one of the most significant. Often, contractors unknowingly overpay on these premiums due to errors in audits, misclassifications, or improper payroll reporting. Recovering these overpayments can lead to substantial financial relief, allowing contractors to reinvest in their business, hire more staff, or improve their operations.
This article explores the process of workers’ compensation premium recovery, provides five hypothetical examples of potential savings, and highlights how BGES Group can assist New York contractors in reclaiming their money.
Understanding Workers’ Compensation Premium Recovery
Workers’ compensation premiums are calculated based on several factors, including job classifications, payroll, and experience modification rates (EMRs). Errors in any of these areas can lead to overpayments. Unfortunately, many contractors are unaware of these mistakes, leaving significant amounts of money unclaimed.
Premium recovery is the process of identifying and correcting these errors, often resulting in refunds for overpaid amounts. While the process can be complex, insurance experts like BGES Group specialize in helping contractors navigate these issues and recover their rightful funds.
Five Hypothetical Examples of Premium Recovery
Here are five examples that demonstrate how much contractors could potentially recover by addressing workers’ compensation premium errors:
1. General Contractor – $50,000 Recovered
A general contractor was audited and charged for subcontractors without proper certificates of insurance. Upon review, it was discovered that many subcontractors had their own valid workers’ compensation policies. Correcting these errors led to a $50,000 refund.
2. Roofing Contractor – $75,000 Recovered
A roofing contractor had employees misclassified under a higher-risk job code, resulting in inflated premiums. After a detailed audit, the correct classification was applied, and the contractor received a refund of $75,000.
3. Electrical Contractor – $35,000 Recovered
An electrical contractor’s payroll was inaccurately reported to include non-covered employees, such as clerical staff. Correcting this mistake resulted in a $35,000 refund from their insurer.
4. Demolition Contractor – $90,000 Recovered
A demolition contractor discovered that their EMR was calculated incorrectly due to an error in their claim history. With BGES Group’s assistance, the error was corrected, leading to a $90,000 recovery.
5. HVAC Contractor – $40,000 Recovered
An HVAC contractor overpaid premiums due to discrepancies in audit reports from previous years. A comprehensive review revealed the errors, and the contractor received a $40,000 refund.
These examples highlight how much money contractors can reclaim by addressing workers’ compensation premium errors.
How BGES Group Can Help
BGES Group is a trusted name in the insurance industry, offering specialized services to contractors in New York, New Jersey, and Connecticut. They are particularly skilled in helping contractors manage workers’ compensation insurance and recover overpaid premiums.
Here’s why BGES Group stands out:
1. Workers’ Compensation Expertise
With decades of experience, BGES Group understands the complexities of workers’ compensation insurance. They know where to look for errors and how to resolve them effectively.
2. Comprehensive Insurance Solutions
In addition to workers’ compensation, BGES Group offers a range of insurance products, including general liability, umbrella liability, payroll services, and group health insurance.
3. Proactive Premium Recovery
BGES Group conducts detailed audits of clients’ policies and premium calculations to uncover errors and recover overpayments. Their proactive approach ensures contractors aren’t leaving money on the table.
4. Specialized Programs for High-Risk Contractors
BGES Group has programs tailored to contractors in high-risk industries, such as roofing, demolition, and asbestos removal. These programs are designed to provide optimal coverage at competitive prices.
5. Boutique-Style Service
BGES Group prides itself on offering personalized service. They work closely with contractors to understand their unique needs and provide tailored solutions.
The Premium Recovery Process
The process of recovering workers’ compensation premiums involves several steps, which BGES Group handles on behalf of their clients:
1. Policy and Audit Review
BGES Group begins by reviewing current and past workers’ compensation policies and audits. They analyze payroll reports, job classifications, and subcontractor information for discrepancies.
2. Error Identification
Their experts identify errors such as misclassifications, incorrect payroll reporting, or invalid subcontractor charges.
3. Documentation Collection
BGES Group gathers the necessary documentation to support the corrections, such as certificates of insurance, payroll records, or audit reports.
4. Negotiation with Insurers
They work directly with insurance carriers to resolve the issues and secure refunds for overpaid premiums.
5. Future Prevention
In addition to recovering overpayments, BGES Group helps contractors implement systems to prevent similar errors in the future.
Contact BGES Group
If you suspect you’ve overpaid on your workers’ compensation premiums or want to ensure you’re not paying more than necessary, BGES Group is here to help. Contact Gary Wallach, the founder and principal of BGES Group, to get started:
• Phone: 914-806-5853
• Email: bgesgroup@gmail.com
• Website: www.bgesgroup.com
Gary and his team are dedicated to helping contractors recover their money and optimize their insurance coverage.
Final Thoughts
Workers’ compensation premium recovery is a valuable but often overlooked opportunity for New York contractors. By addressing errors in policies and audits, contractors can reclaim significant amounts of money that can be reinvested into their businesses.
BGES Group is a trusted partner in this process, offering the expertise and personalized service needed to navigate the complexities of workers’ compensation insurance. With their help, contractors can unlock hidden savings and ensure they’re not overpaying in the future.
Don’t let your hard-earned money go to waste. Contact BGES Group today and start recovering your overpaid workers’ compensation premiums.