Red flags or warning signs that you have overpaid
Keep in mind that some of our most successful audits were performed for clients who had not identified a particular problem or "pain point" with respect to workers' compensation insurance costs. They just felt that it was wise, as a matter of performing due diligence, to have an expert review their program, and the decision really paid off (literally and figuratively). With that said here are some issues that should cause some concern.
Warning signs from your audit
Warning signs from your policy
Warning signs for contractors
•Your final audit contains classifications that are different from your policy.
•You did not get a copy of your auditor's worksheets.
•You received a large additional premium or return premium (you may have been entitled to more).
•The audit was conducted on a quarterly basis using the 941s or State Unemployment returns.
•Your audit was conducted more than 120 days after expiration.
• Your audit was conducted via mail or telephone.
•Your policy was endorsed mid-term to increase your premium.
•Credits that you once received have been revoked or reduced on your current policy.
•Your policy does not use at least 4 classifications.
• Your policy was cancelled or rewritten with a different effective date.
• You have a minimum premium policy and have no employees or payroll.
• Your policy contains an ARAP surcharge.
•You pay $75,000 to $1,000,000 per year in work comp premiums and you have not had an independent premium review in the last 3 years.
•Your insurance company reclassified a large group of employees.
•You have never reviewed NCCI's Scopes Manual for new codes.
•Your experience modification has been increased during the policy period.
• Previously open claims have been denied by official rulings.
• The insurance company has changed your basic classification.
• Your state implemented a rate change.
• You have had an NCCI or Bureau inspection which resulted in a higher rated classification being added to your policy.
• Your general liability policy is "composite rated" on payroll.
• Your classification includes the words "all employees."
• You are an executive officer of the corporation and your wages were assigned to a high rated classification.
•You're a contractor involved in several types of work.
•You're a contractor involved in wrap-up/OCIP construction projects.
•Charges were made for subcontractors or owner-operators.