New York Workers Compensation Insurance
We love workers compensation in NY!
The reason we love New York workers compensation is that it’s one of the few lines of insurance that is so rich in opportunity to re-capture lost expense dollars through very SIMPLE changes within your organization, without always incurring additional expenses.
Most of these SIMPLE changes cost nothing, or pennies to the insurance dollars spent. Every year businesses overpay on their workers compensation in NY due to overcharges resulting from incorrect payroll audits resulting from among other reasons; improper classifications; the business not taking all of the eligible deductions from their payroll, like tips and overtime wages; or not getting properly charged for uninsured sub contractors, (splitting out the materials component of the job and only being charged on the subs labor component). Another area where businesses are overcharged is on an incorrect experience modification factor calculation that could have a HUGE out sized impact on a business.
Through our SIMPLE process we have the ability in house to perform these critical functions that will re-capture lost critical business capital:
- PAYROLL AUDIT VERIFICATION PROCESS - We can audit back 3 years to ascertain if your business received all of the eligible payroll exclusion you were entitled thus reducing your premium charges in each of the three years. We also verify proper classification codes were used. If we find errors, and most times we do, we will petition the company for a refund of those premium dollars for each year the error occurred as required by NY State Law.
- PAYROLL AUDIT PREPARATION - We will help your company prepare your Workers Compensation Audits upfront before the carrier arrives. We do this to save you on administration costs, and to be certain that the audit will be done properly on a go forward basis so you know the premium you are being charged is the proper charge. When the carrier completes their audit we verify their numbers reconcile with ours. To date I have yet to meet a business or another broker that performs this critical verification. If they are not doing this verification how do you know if the audit is correct?
- EXPERIENCE MODIFICATION FACTOR AUDIT - Next to your credit report this may be the single most critical business statistic for your company. If your Experience Modification Factor goes too high, you are subject to surcharges, costly administrative penalties , and not too mention the unnecessary drain on your cash flow. You may also lose out on new business opportunities if your mod gets too high. On most publicly funded projects like Davis Bacon projects, if your Mod is over a 1.20, you CANNOT bid.
If your company is just buying workers compensation in NY and has not gone through a SIMPLE process similar to this, then how do you know if you are not being overcharged by your insurance carriers? As mentioned, the error rate on payroll audits and the experience modification factor calculations are in excess of 50%. Call one of our Risk Advisors today to see how in a 20 minute consultation our SIMPLE process can recover your money and better position your company to be a leaner and meaner competitor by lowering one of your highest fixed costs.