If you have ever had to run a business then you have dealtwith workers’ compensation insurance companies. Dealing with the non-stop threat of increased rates will make any employer paranoid.

No doubt you already understand that there are many things that can occur in your business that will cause the workers’ compensation insurance companies to raise your rates. What you may not know are that there are also numerous errors made by the insurance company that have a detrimental effect on your business. The following is a list of common errors by companies and workers comp insurance companies.

The following are some common errors made by employers that cause workmans comp rates to go up:

* Lack of safety program for injury prevention
* A lack of an effective return to work procedure
* Not informing insurance companies of injuries when they occur
* No direct contact with the injured worker’s doctor

These are only a sampling of the common errors that employers make when dealing with workmans compensation. There are several options available that will help you to reduce premiums with very little upfront costs. If left unchecked the considerations above can amount to thousands if not tens of thousands of dollars in increased premium rates.

The following list below are common errors made by workers comp insurance companies:

* Workers assigned the wrong workers compensation classification code
* Employer’s experience modification was calculated wrong
* Proper credits and discounts never applied
* Mis-calculating payroll

Believe it or not, these mistakes are only a small sample of the many errors that arise. A common problem is when the workers comp insurance company is calculating the overtime rate at the amount listed on the payroll as opposed to a straight hourly rate.

Another problem is employees being put into the wrong job classification category. This error can cost a business thousands of dollars. One example is a clerical worker being classified under the roofing classification code because that person is required to go to the work site on an infrequent basis.

If you have ever tried to deal with carriers you know how difficult it can be to get your company’s rates lowered. In all likeliness you may be right, you may not have the tools you need to show them the problem so that it can be fixed. Then there’s the errors that you do not know about that are costing your business money. Mistakes that add up to tens of thousands of dollars over time.

Take it from me, I’ve seen it first hand. I recently saw a policy that had a whole host of errors that the employer ended up being refunded $96,000. Essentially, the company were refunded back $16K a year for6 of the previous years. I do not know about you but I could sure use an extra $96,000.

You probably think I’m making this up but you would be wrong. It is not even the largest refund I’ve seen. Typically on average we find about $37K in refunds. Naturally it all depends on what your company is paying in premium rates but typically we usually recover about ten percent of the annual premium.

Don’t take my word for it, try it out yourself and see.

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