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Workers Compensation Claims: For reference to this section, see Glossary.
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(Y)es or (N)o
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1. I would like to increase my cash flow by reducing my Workers Compensation premiums.
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2. I would like my current claims handling practices analyzed by an outside source.
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3. I would like an individualized case management program designed for my company.
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4. I would like my retro loss adjustments reviewed for possible loss audits.
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5. I would like my Work Comp files reviewed for accurate claims handling.
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6. I would like my NCCI experience modifier reviewed for accuracy.
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7. I would like my claims to be reviewed to see if I should take a claims deductible.
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8. I would like a seminar to teach my supervisors how to spot Worker Compensation fraud.
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9. I would like on-site investigation of suspicious claims for possible prosecution.
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Workers Compensation Claims Services
The key to permanent cost control is the development of an affordable in-house claim management program that gives you control over your claims.
Here's how to increase cash flow by reducing Workers Compensation claim costs:
Step 1: An analysis of how your company handles claims internally is performed, even if claims are managed by an insurance company or third party administrator;
Step 2: Your individualized case management policy is designed and implemented with your staff trained in the day-to-day operation of the program;
Step 3: Watch your cash flow increase as your costs drop as much as 35%.
- Evaluate quality of claims services provided by insurance companies or third party administrators;
Examine retro loss adjustments to determine if losses should be audited;
File Reviews and Audits;
Evaluate Premium quotes to ensure they are quantified to the same risk and rates;
Monitor NCCI e-mod reports;
Claims loss summary analysis;
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Risk Tip
Don't Overlook Workers Comp Premium Credit
Most contractors know that workers compensation insurance premiums are based on payroll. However,
many do not know that 20 states allow a "Contractors Premium Credit Adjustment" if the hourly
wage level exceeds the state hourly average wage. (See list of states below.) Contractors paying
union scale will almost always qualify for the credit. The size of the credit varies, but in most
states, eligible contractors can earn a credit of anywhere from 5 percent to 40 percent, and
discounts of 20 percent or more are not uncommon. Most states use a formula based on the state
average weekly wage to determine the size of the credit; however, six states determine the credit
from a table. This is a credit only, never a debit.
States allowing a Contractors Premium Credit Adjustment are Alaska, Connecticut, Delaware,
Florida, Hawaii, Illinois, Maryland, Massachusetts, Minnesota, Missouri, Montana, Nebraska, New
Jersey, New Mexico, New York, Oklahoma, Oregon, Pennsylvania, Virginia, and Wisconsin. To
qualify, most states require at least 50 percent of the policy premium to be in construction
codes. Connecticut, Illinois, and Oregon require the contractor to have an experience modifier
below 1.0 in order to be eligible for the credit. The credit must be verified during the premium
audit, so contractors must be diligent to maintain relevant documentation to ensure the credit
will be upheld.
The Contractors Premium Credit Adjustment can be obtained by completing a simple application form
supplied by the National Council on Compensation Insurance (NCCI) or the appropriate independent
state bureau. Because the credit applies on a per-state basis, eligible contractors operating in
one of these states can take advantage of the credit, even if they also have operations in other
states that do not allow the credit. Contractors should contact their agent or broker to
determine if they are eligible for, or receiving, this credit.
Submitted by Scott B. Miller, Director of Premium Audit, Acadia Insurance
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