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Workers Compensation

We've saved clients over $1,000,000 by correcting WC Experience Mod Errors.


 

That's right - we've found over $1,000,000 in experience mod errors and have been able to recover that money for our clients! Over 50% of the NCCI experience mods are incorrect and that can cost you big bucks. We can analyze your experience mod for errors. If we find errors, we can help you recover your money from the insurance company and save money on your current insurance. 

Whether your premium is small or large, we have a plan to fit your needs. We offer Pay-As-You-Go, Monthly self Audit, Dividend, Retro, Large Deductible and Self Insured Plans. 

We're workers comp specialists, and our knowledge and experience can help save you money. 

Is an incorrect workers comp mod driving up the cost of your insurance?

Simply put, your workers' compensation experience modification is the ratio of your actual work comp losses to the losses expected of an employer like you. The calculation considers your employment classification and your payroll in the comparison. A mod of less than 1.00 means your losses are smaller and less frequent than average. A mod of 1.00 and above means that you are average or above average. 

The lower the mod the lower your premium. Work comp policy premium is determined by multiplying your payroll by the rate per $100 your insurance company charges. The resulting number is multiplied by your experience mod.

If your mod is .85 you are saving 15% on your premium. Conversely, if your mod is 1.15 your paying an extra 15%. 

In most states, Workers Compensation Experience Modifications are calculated by the National Counsel on Compensation Insurance. NCCI is a not-for-profit rating, statistical and data management services organization. They are funded by a variety of workers' compensation insurance organizations and companies to act as a central source of workers compensation data. Part of their responsibility is the calculation of experience modification data. They receive claim and payroll audit information from your insurance company and calculate your experience mod.


You need to know this:

More than 50% of the mods that we verify are not correct - costing employers more than it should for workers compensation coverage. No one ever wants to pay more than necessary for their workers comp insurance , but sometimes the over-charges have been staggering!

We have yet to find the error to be in the computation done by NCCI. It’s the old “garbage in, garbage out” that applies here. NCCI calculates your mod using information provided by your insurance company(s).


 


5 REASONS YOU PAY TOO MUCH


Your experience mod may be costing you more on your workers comp insurance because:


  • Incorrect Payroll Reporting to NCCI

We have seen numerous cases where the audited payroll was under reported to NCCI, causing the mod to increase. In one particular case, none of the $20,000,000+ payroll was reported by the insurance company, but all of the losses were reported twice!

  • Incorrect Claim Reporting to NCCI

This is where a large majority of errors occur.  Claims that were reduced, closed, or should have been closed get reported at the higher amount.  Medical only claims which are reduced 70% by NCCI are sometimes reported as Indemnity claims and therefore the full amount of the claim is calculated into your mod. We have seen one insurance company pay out ridiculously small amounts of indemnity on what would otherwise be medical claims, thus changing the claims to  indemnity claims and making those claims ineligible for the 70% reduction.

  • Claim Reserves Left Open

Often claims that should have been closed are left open and reported to NCCI at the typically higher reserved amount. This is a costly oversight to you from the insurance company that you have partnered with.

  • Employers Who Have Left a PEO

Although they are required to report your payroll and losses to NCCI after you leave the PEO, we often find that PEOs do provide the information until requested to do so. NCCI will therefore use the minimum amount of time of twelve months payroll and losses to calculate your mod.  Provided losses are good, using three years worth of payroll and losses instead of one year, usually results in a lower mod.



Our Service Fee

Our fee is ½ of the amount of premium that we save you or get refunded to you. Should you decide to appoint us as your agent after the work is complete, we will waive the fee.  In the event that your experience is correct, there is no cost to you at all.

Do You Want to Know if You Are Paying Too Much for Workers Comp Insurance?
You don’t need to wait until your renewal to find out if your mod is correct.  Mod corrections can be made as soon as they are found. 

Many times, the prior year mod is also incorrect. Once there is an error, it affects your mod for three years unless it is corrected. So you don’t over pay one year but you over pay three years!  We can get the prior mods corrected and have the insurance company return the overpaid premium to you.

Unless you inquire, there’s probably no one checking to see if your mod is correct.  Most agents don’t know how to verify a mod. For those that do, it’s a time consuming process that doesn’t increase revenue – just the opposite. So, chances are good that no one is looking out for you when it comes to your experience mod.

There’s no risk to you – it doesn’t cost you a penny if your mod is correct. If it’s not correct, you just found yourself a refund!

Please call or email Lenise Zika if you want to find out if your experience mod is correct. 407.898.2211 x105 or Lzika@clossoninsurance.com

 

Knowledge and Experience. It Matters.




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