Archive for: Experience Mod & Premium Audit

At the Institute of WorkComp Professionals (IWCP) we have found that approximately 75 percent of audits have errors that result in overcharges. This figure is even more alarming when you realize that employers are responsible for most mistakes because they do not understand how to keep records properly to ensure that the audit is correct. […]

There has likely never been a time when workers’ compensation insurance has been less expensive than it is now. For example, in 1994, employers constructing single-family homes in Florida paid a rate of $32.89 per $100 of payroll. In 2023, the rate for that same classification was $11.44 per $100 of payroll. Adjusted for inflation, […]

In 2021 WorkComp Advisors noticed that auditors were being far more aggressive than they had been in the past. In some respects, it was understandable. Payrolls and worker’s comp net written premium were down significantly in 2020 and it’s the auditors’ job to recoup as much as possible. Many expected a return to less aggressive […]

The experience mod is an important piece of the pricing puzzle for most businesses’ workers’ compensation. For many companies, especially those in construction and oil and gas industries, the experience mod is frequently used as a factor in the bidding process. In the 36 states where the National Council on Compensation Insurance (NCCI) governs the […]

It is a time like no other for insurance renewals. The COVID-19 pandemic and the resulting economic fallout have upended the decades-long certainty within the workers’ compensation market that let employers reap the benefits of a soft market. Steep declines in premiums as a result of historic unemployment and falling payrolls suppressed investment returns from […]

While an IRS audit strikes fear in the hearts of business owners, a Workers’ Compensation premium audit is considered routine. Yet, there is a very good chance that it can result in higher charges, particularly if you are not adequately prepared. Clerical errors, incorrect classifications, and miscalculations often lead to overcharges. There are two important […]

Department of Labor opinion letter Issued April 29, the opinion letter https://www.dol.gov/whd/opinion/FLSA/2019/2019_04_29_06_FLSA.pdf addresses whether a service provider for a virtual marketplace company is an employee of the company or an independent contractor under the FLSA. It concludes that the workers who provide services to consumers through this company’s virtual platform are independent contractors, not employees […]

The 2018 World Series left in its wake memories of clutch hits, gutsy pitching, and ballet-like leaping catches. But the one memory that also stands out took place even before the first pitch was thrown, when Dodgers’ manager Dave Roberts posted his opening game lineup. The lineup was remarkably missing his three best hitters, all left-handed batters […]

Whether you’re an insurance professional, an employer or “the person in charge of insurance,” it’s often difficult to get your arms around Workers’ Compensation. It’s complex and fraught with so many “moving parts” you can almost be certain that what you say will be challenged and certainly open to interpretation. While there are several good […]

To keep their premiums at the lowest cost each year, it’s not unusual for businesses to seek job classifications with lower ratings. Workers’ Compensation guru, David Leng, explains in his book, Stop Being Frustrated and Overcharged Year After Year by Your Workers’ Compensation Program, this practice can actually backfire. He cites the case of a […]