Workers compensation overcharges are the result of a complex system designed by actuaries, implemented by clerical personnel, and overseen by 50 state regulators. The premium that you pay for this insurance is derived from a complex interrelationship between classifications, rates, payrolls, and your experience modification.

Aggressive Pricing

It is the norm that insurance companies overcharge on your workers compensation programs.  The complex system to determine premium allows for this to happen.  Some companies are notorious for this practice.  Since there is no significant oversight, there exists little to inhibit the impulse to maximize premiums. Once overcharges are discovered, the insurance company will rectify the mistake, but only for the policyholder that complains. Otherwise you will continue to be overcharged.

Complexity

The workers compensation pricing system is incredibly complex. The scope of classifications alone is mind-boggling. While most states have approved about 600 different classifications, the number actually ranges from 480 (Massachusetts) to 725 (New York). Interpretation of classifications varies from state to state.

Insurance underwriters, premium auditors, and technicians frequently handle multi-state territories. They are required to know all the rules and nuances of multiple jurisdictions. As a practical matter, even conscientious staffers are overburdened and make costly mistakes.

Insurance Regulators

Insurance regulation is conducted at the state level. There are fifty state insurance departments and each department implements and enforces its own set of laws. Each state relies on expertise from one of the 13 different state rating bureaus. When an insurance department is contacted for assistance from a policyholder, they often defer to the local bureau. These bureaus are in itself part of the insurance industry. Together, they have developed an incredibly complex system that cost you money.

Insurance Industry Turnover

Personnel turnover in the insurance industry is notoriously high. Underwriters, premium auditors, and technical personnel typically move between jobs and companies once their job is learned. It is common knowledge that insurance companies are little more than training grounds for more stable and better paying careers. An insurance company branch office is as much a classroom as it is a business. A typical underwriter or premium auditor begins his or her career at the insurance carrier. In a few years he or she will move to an insurance agency or broker where their skills are refined. The more ambitious will eventually move to private industry and assume the role of Risk Manager.

We Work For You Not The Insurance Industry

As turnaround specialist we discovered that a premium audit was a major source of revenue for our clients.  We realized that most companies could save significant monies if they retained a firm who understands this complex system.  The system is so complex and corrupted, that only someone familiar with the rules could recover the millions due our clients.  Even the recovery process is complex

The system is a mess.  As we have learned, everyone involved is related to the insurance industry. We have learned that it is the norm for insurance companies to overcharge.  We have learned even the best insurance agents only follow the guidelines of their insurance companies.  If everyone and everything is working for the insurance companies, who is working for you?

 You need to retain us to do your premium review and show you how vulnerable you are and how much money you have are due. The benefits are not only limited to refunds, but we will insure that you are not overcharged in the future.

We have recovered millions in workers compensation overcharges on behalf of our clients from insurance companies. All efforts on behalf of our clients are on a contingency basis.  Unless we are able to secure you a refund, you pay nothing!  Even in the few cases we have not been able to secure a refund, our clients save money with lower future premiums.