Reducing Future Costs
Many companies hire us to recover overpaid premiums from past years, to reduce their premium liability for the current year, or to optimize their modification factor for current and past years. Rarely do companies realize that errors in reporting current policy data as well as data from past policies can have a significant adverse impact on future experience modification factors and associated premiums.
The experience modification factor that will be used to determine 2009 workers’ compensation premium will typically include exposure from your 2005, 2006, and 2007 policy years. In addition, your 2009 policy exposure will typically impact your “yet unpublished” 2011, 2012, and 2013 experience modification factors and associated premiums.
The good news is: We can reduce your future costs by optimizing your current and past modification factors, and you get the benefit at no additional cost. That is, our contingent fee is based on policies that have published experience modification factors. Therefore, there is no additional charge for any benefit our audit provides to future – yet unpublished – experience modification factors.
Assuming we performed our compliance audit on your 2005, 2006, 2007, and 2008 policies, you could potentially enjoy benefit on the “yet unpublished” 2009, 2010, 2011, and 2012 experience modification factors and their associated premiums. Assuming we were contracted with you at the time the future mods are published, we would try to drive them down further. (Our work on experience modification factors once they are published are subject to fee.)
I know this can be very confusing but we are happy to explain it further. Just contact us and we will explain.
We offer our contingent fee program to companies that pay in excess of $100,000 in annual workers’ compensation premium for a guaranteed cost or loss sensitive program. We also offer hourly and flat fee programs.
