The subject of this blog takes a slight detour from the health and wellness of your employees and looks at the financial wellness of your company. According to the Institute of Worker’s Comp Professionals, over 50% of businesses are overcharged for their worker’s comp insurance. There are a number of reasons for this. Payroll miscalculation could be one reason. It is vital that you do not include overtime pay, holiday pay, and owners pay as part of your overall payroll.
In general, you need to take the audit process seriously and go into it well-prepared. Your insurance company is going to ask questions in order to ensure they are being compensated appropriately for the coverage they are providing you. Similarly, you should be prepared to ask the right questions to ensure that you receive all of the premium discounts and credits you are entitled to. This will not only save you money but will also potentially save your reputation. Overpaid premiums could adversely affect your company’s finances. This could potentially jeopardize your lending profile and impede your eligibility to bid on contracts. This is one more way to help you cut costs and protect your company. In short, go into the audit process with all of the information you can gather, be ready to share it with the auditor, and be prepared to ask the right questions.
Written by Ross Amato & Nickalas Oates
Work Comp Specialists