Insurance & Employee Benefits
The rating agencies hired by the various state compensation boards promulgates an experience modification factor on the policy anniversary rating date if an account qualifies. An experience mod can either work as a debit or a credit based on the loss experience of the company versus its industry of peers. We are often successful in reducing the experience mod by various methods.
The Rating Boards categorize job descriptions by class codes and generally base the cost of insuring each category by a predetermined amount that is adjusted annually. The charge can be less than $ 1.00 per $ 100 of payroll for a clerical employee to over $ 30.00 per $ 100.00 for many construction and high hazard jobs. We examine the payroll allocations of each employee to ensure that the proper class codes are utilized.
The loss experience of an account can adversely affect the premium that the business is charged if the experience is unfavorable. Our claims department examines each claim and attempts to lower the reserve amounts whenever possible. This approach is proactive in tracing the progress or development of each claim.
Once reserves are lowered and the experience modification factor is promulgated, we have a better chance to negotiate higher discounts with the carriers.
When compensation carriers conduct an audit, they adjust the previous years payrolls and calculate the premium based on the exposures with the applicable class codes. The class codes are determined by the nature of the business and the job duties of the employees. Our accounting department conducts a trial audit prior to the insurance company to test the payroll figures and their respective class codes for budgeting.
Recommend Alternative Risk Financing
If the loss ratio of the organization is favorable with proper class code allocations, the more appealing the organization is to the market place. Since we have many affiliations with different carriers, captives, reinsurers, etc., we can recommend a plan that can potentially save the organization money. For larger accounts, we examine the use of alternative risk financing, such as self insurance supplemented by reinsurance, or retrospective rated plans whereby the premiums adjust based on the claims.
Offer Loss Control Inspections
The most effective way to control workers' compensation exposures and costs is to prevent and/or minimize work related injuries. Our philosophy is to provide an organization with safety and loss control education & tools to mitigate injury in the workplace. We are affiliated with qualified loss control and certified safety engineering specialists to plan and work with employers in creating a safer work environment by identifying potential risks and recommending plans to control the exposures.
We work through our professional affiliates in providing high quality workers’ compensation fee based services. Many of these services are provided by our staff, but when necessary we align ourselves with outside companies that focus in areas that are highly specialized.
How do we get compensated?
Experience Mod Reduction -
Class Code Allocations -
Negotiate Discounts -
Trial Audits -
Alternative Risk Financing -
Loss Control Inspections -
Let Us Negotiate Your Premium for a Fee -
Criminal, Social Security, MVR’s, Licenses