Skyrocketing Audit Bills
One of the significant concerns surrounding workers’ comp insurance is the potential for escalating audit bills. With the number of intricate details and requirements involved, companies can find themselves facing exorbitant charges swiftly.
A Startling Statistic
It might come as a shock, but 70% of workers’ comp audits are billed incorrectly. This staggering percentage draws attention to a severe issue within the industry. Why does this alarming rate of error occur? The root cause often lies with the insured parties – primarily, construction companies.
The Underlying Issue
These insured entities frequently provide inadequate or incorrect information during audits. Without accurate details, auditors struggle to determine the right class codes and verify payroll accurately. The result? A large majority of audits end up with errors, leading to financial and operational complications for companies.
The Role of a Knowledgeable Broker
When dealing with such intricate matters, it’s imperative to collaborate with a broker who possesses a deep understanding of workers’ comp insurance and, more importantly, your specific industry. A well-versed broker will typically be familiar with the various class codes, knowing them by heart. They’re aware of the nuances and changes in classifications and can guide companies effectively. By having a knowledgeable broker on your side, you significantly reduce the risk of being rated under incorrect class codes.
Ensuring Accurate Class Codes
Many companies unknowingly operate under the wrong workers’ comp policy class codes. We specialize in reviewing workers’ comp policies, ensuring that class codes are accurate and that you’re paying the appropriate premiums.
In Conclusion
To reiterate, 70% of workers’ comp policy audits are riddled with inaccuracies. The primary reason is that companies aren’t equipped with the necessary information for a successful audit. By understanding this pitfall and taking the necessary precautions, you can protect your company from undue financial strain.
Thank you for taking the time to read this. For more insights, do explore my other videos. Should you have any queries about this topic, feel free to reach out or email me.