Workers Compensation Insurance – Crossing A State Line Could Leave You With Huge Bills November 28, 2011

Workers compensation insurance was and is by its very nature a compromise.  In agreement for not allowing your employees to sue you for injuries that occur on the job, these same workers gain the benefits for injuries and accidents that are spelled out in your state’s workers compensation statute.  Whatever the statute says determines when and how much the injured worker will receive.   And this compromise keeps business and commerce humming along with much less disruption.  But we have 50 states in this country and thus 50 different sets of statutes and rules.  So what happens when you cross state lines to do work or to hire other employees?   That’s when things become more complicated.

First of all, as you read this article, bear in mind that our starting point and our vantage point  is North Carolina and North Carolina workers compensation insurance rules.  If your business is located in some other state,  then some of what you read in this blog may or may not apply to you.  Please keep that in mind as you read further.

There are several ways in which going out of state can get a company in trouble with workers compensation rules and laws.  The most vulnerable businesses are those who can pick up and go to another state to perform work there.  Usually this applies most to artisan contractors whose work opportunities here in North Carolina may be diminished by the economy and so they chase storms and other natural disasters to find work in other states. 

If a contractor with a NC workers compensation insurance policy takes their North Carolina employees (those who live in NC and were hired in NC by your NC based company) to do work in other states, then their North Carolina workers compensation policy will protect them from losses that may happen on these out of state jobs.  But, if a contractor hires new employees who live in this other state, then that contractor is risking a coverage gap.  You see, some states have more generous benefits to injured workers.   Some will allow injured workers  to choose which state (either the state they live in or the state they worked in or the state where your business is domiciled) work comp rules they want to file their claim under.  Of course these newly injured employees of yours will choose the state with greatest benefits for them and their claim.  If that happens to be a state other than NC, then you may be paying some of the claim yourself.  This is because your NC workers compensation policy could be limited to the benefits stipulated by NC workers compensation law.

There are several  solutions to this problem.  The safest solution  is to let your insurance company know who is working where and let them add the appropriate state rates and class codes for those workers to your policy.   A catch all type of solution which is less fail safe, is to endorse the all states endorsement on to your workers compensation policy.   The all states endorsement on a NC workers compensation policy will extend benefits for your policy to match those of the states listed on the endorsement. 

Another  area where employers can run into trouble is with the employees who live in a different state from the one in which the business is located.  This often happens with businesses located near state lines.  If your business is based in NC but you are near the Virginia border for instance, you may  hire employees who live in Virginia.   If this happens, then you should add Virginia rates and class codes to your NC workers compensation policy for those employees on your staff.

The last trip wire to watch for in all of this is the monopolistic state fund states.  These are states that require that all workers compensation insurance in their state be written by the state government workers compensation program.  This means that no private insurance companies are allowed to write workers compensation insurance in these states.   If you operate in one of these states and have a claim there, your only protection on your NC workers compensation insurance policy will have to come from the employers’ liability insurance section on your workers compensation insurance.  This may be suffice if your exposure is only incidental but if you are running ongoing projects and operations in that state or hiring employees that live in that state, my advice is that you purchase a policy from that state’s monopolistic state fund.   Don’t take chances here, the risks are just too great to ignore.

When it comes to workers compensation insurance, all of the simplicity of the policy disappears as soon as you start crossing state lines for work or for hiring.  You should make sure that you keep your agent informed of what you are doing and where you are doing it.  Clinard Insurance Group, located in Winston Salem, is an agency with a great deal of experience in the North Carolina workers compensation business.  If we can help you with your workers compensation insurance questions in NC, please feel free to call us, toll free, at 877-687-7557.

Experience Mod Formulas Are Changing – How Will This Affect Your Workers Compensation Insurance? October 18, 2011

One unique feature of work comp insurance is that there is a direct link between the rates that you pay and the losses you’ve had in the past.  The conduit for this process is the experience modification factor, a rate modifier on your work comp policy that increases or reduces the rates you pay based on your past loss experience.   You can learn more about experience modification factors and how they are calculated, by clicking here.

The NCCI (National Council on Compensation Insurance) is the entity that maintins the experience modification factor process.  The current mod formula has been unchanged for many years.   This formula estimates what the expected losses will be for each company, based on their class codes and their payroll levels.  Next it compares your expected losses with your actual losses to see where you stand in the spectrum of all businesses.    There are two parts to this formula; one that measures loss frequency and another that measures loss severity.  The loss frequency side of the equation is what is changing the most with the new rules.  This portion of the formula caps the maximum amount of all losses at $5000.   So, for instance,  if your company has a $5000 loss and another loss that is $100,000, they will both carry the same weight on this side of the modification formula.   This means that a company with several small losses may have a higher mod factor than one with one large loss, even though the company with the one large loss may have had a greater total loss payout that year.   

The new modification calculation formula  will change the $5,000 cap on the frequency side of the equation.  The cap changes will be phased in over time between 2013 and 2015, and by the time the phase in is complete; the cap will have been increased to $17,000.  After 2015 this cap will be indexed annually for inflation. 

So what should you do to get ready for these new rules?   The information that I am seeing seems to indicate that if your mod is less than 1.0, then you will probably see an even lower mod under the new formula.   This impact is greatest for the lowest mods.  For example, it is expected that a mod of .83 today would translate to roughly a mod of .77 in 2013, but one of .99 will only reduce to .98.  This same dynamic works in the opposite direction as well.  Mods above 1.0 are expected to go higher under the new formula.    A 1.14 mod should turn into a 1.18 while a 1.69 mod will become a 2.01 mod.  In the final analysis, with this new formula in place,  those with losses are going to pay more for their work comp and those that control and reduce their losses will see lower mods.
So what does this mean for you?  Well now you have even more reason to control you loss costs.  You have both more to gain and more to lose.  When shopping for workers compensation, it is even more important now that you select an insurance company with significant loss control and return to work programs.  Workers compensation insurance in NC is a specialty line and there are companies here  that do nothing except workers compensation insurance.  The advantages that these companies will have in loss control and back to work support  will now mean even more to you over the long run.

At Clinard Insurance Group, in Winston Salem NC, we are an independent insurance agency handling hundreds of workers compensation policies for our clients all across North Carolina.  Our knowledge and experience with   workers compensation insurance can save you big money on your workers compensation policy, both today and 5 years from now.  Give us a call today, toll free, at 877-687-7557 or visit us on the web at www.ClinardInsurance.com and let us get to work for you right away, helping you carve away some of your workers compensation expenses.

The Work Comp Experience Mod – A Quick Look At What Every Small Employer Should Know August 19, 2011

In NC, employers with 3 or more employees are required to buy a  workers compensation insurance policy.  Most employers will  also eventually learn about the experience rating plan in NC and the tool that implements it,  called the experience modification factor.  We call it the experience mod for short and this little tool will leverage your attitude about employee injuries to either become a huge money saver or cost your company big money.  Understanding how your mod works and how it is calculated will load the odds in your favor that the leverage here works in the right direction for you.  This article is can help you do just that.

The experience modification factor is the tool that puts into action the concept of experience rating in North Carolina workers compensation insurance.  Experience rating is simply allowing each company to have their own workers compensation rate that reflects their past loss experience.  This kind of rating plan is generally a very good thing for employers who want to protect their workers and keep injuries at a minimum.  For those who aren’t, the experience mod can be a brutal punishment.  But when you think about it, it is a much fairer system to reward careful employers and not force them to pay for all those losses that the careless ones generate. 

Your experience mod is simply a modifier on your policy  that is applied to your total premium to better reflect the loss experience that you have had in the recent past/  With a  mod that is larger than 1, you will be paying an additional surcharge on your policy for your past losses.  If your mod factor is lower than 1, and then you are receiving a discount for good past loss experience.  With mod factors running as high as 3.25 and as low as .72 or even lower, the range from reward to punishment can be huge.

Not all workers comp policies in NC are eligible for experience rating.  There are two factors involved, time, and premium size.  First of all, the experience must develop over time, so your policy must be in place for at least 2 years before an experience period can be evaluated.  Companies that are new in business and buying their first workers compensation policy, won’t be experience rated during the first two years.  The second criterion is size of the business, measured by workers compensation premium.  Very small work comp policies may never reach a large enough size to be eligible for experience rating.   This is due in part to the costs of experience rating a company and the unlikelihood that past experience will accurately predict future experience with very small companies.  Therefore, employers are not experience rated unless they have had an average annual work comp premium of more than $2500 for the past two years, or have payrolls in the last year, or two years that would develop a premium that exceeds $5000.  But once those thresholds are hit, your workers compensation policy will be experience rated by the NC Rate Bureau.

The experience rating process looks at losses during the experience period.  That period is usually 3 full years, ending one year prior to the effective date of the modification.  For example, a modification done on January 1, 2010, would look at the payrolls and losses for the prior policies effective January 1, 2006, January 1, 2007 and January 1, 2008.   As you may have already guessed,  a year of bad losses on your is going to hang around and increase your mod and thus your total work comp costs for a long time to come.

One more important aspect of experience rating for you to understand is just how your modification factor is calculated.  The formula for deriving the mod itself is fairly complex so I won’t get into much detail, but as an employer, you should know a few important things about this process.  First, small losses have the greatest impact on driving your mod higher.  The formula classifies all losses under $5000 as primary losses and these losses carry the greatest weight in the formula, especially for small employers.  Larger losses are capped and then given increasing importance for larger employers, but for the little guy, the small losses will sting the most.  The message to small employers is clear  – loss frequency is the strongest measure by which the NC Rate Bureau will punish you via your experience modification factor.

In the past, some employers would pay the small medical only claims out of their pocket, just to keep from reporting them to their workers comp company and risk driving up their mods.  This practice is dangerous for both the employer and the employee and to remedy this, NC now only applies 30% of the medical only losses to the rating formula.  Those still engaging in this practice probably don’t even know the risks that they are taking and how the mod rating process has changed.   Please file all work comp claims with your insurance company promptly.  Paying them yourself could leave you vulnerable if the claim spirals out of control and the insurance company decides that you prejudiced their ability to control the loss.

Your best approach to your experience modification factor is to work to help keep claims from happening, and then if they do happen, take appropriate action to help your employee get healed and get back to work as quickly as possible.  You can go a long way toward both of these goals if you purchase your workers compensation insurance policy from a specialty insurance company, one that writes only workers compensation insurance.  These companies usually have a more streamlined claims process and many also have on staff doctors, nurses and case managers.  This kind or proactive approach to reducing your claims costs will help you keep your experience modification factor as low as possible.  Also, these specialty workers compensation insurance companies will also have loss control services that you can implement right away to prevent some claims from happening in the first place.

Your experience modification factor is a way to even the playing field and to help make sure that those causing the accidents and injuries are the ones who pay the greatest share of their costs.  Take advantage of your new awareness now to make sure that you move yourself and your company to the credit side of the experience mod equation.  Here at Clinard Insurance Group, we help employers all across NC save money on their workers compensation insurance.  We understand this complicated insurance policy and we will take as much time as you need to understand all of your options so that you can best leverage the marketplace to better protect your employees while reducing your insurance expenses.   If we can help answer your questions about NC workers compensation insurance, please call us, toll free, at 877-687-7557 or visit us on the web at www.ClinardInsurance.com.

Code 59 – Is This Little Number Driving Up Your Work Comp Rates? August 12, 2011

The Office of Inspector General (OIG) recently investigated Medicare and Medicaid medical providers suspected of overbilling the system by using billing override code 59.  Code 59 is just one of 35 different coding edits used to bypass Medicare’s National Correct Coding InitiativeThe OIG audit showed that 40% of all code pairs billed with the code 59 modifier resulted in overpayments to medical providers.  And these overpayments totaled $59 million.  Worse yet, code 59 is  just one of 35 modifiers used to override coding edits on bills submitted.   The OIG audit also indicated that computer billing programs did not detect overbilling errors cause by the use of these modifiers.  The errors were only found in the rare instance that the bill was reviewed independently by a human being.   We all know that there is fraud in the government medical systems, but what does that have to do with you and your workers compensation insurance rates?

In North Carolina, workers compensation policies are experience rated policies.  This means that your claims experience, either good or bad, will affect the rates that you pay each year.  This is accomplished through the use of an experience modification factor on each policy.  Your experience modification factor, referred to in the business as your mod, is an extra multiplier on your rate.  Good loss experience over time can result in a modifier that is less than 1.  When that happens it means that you are receiving a discounted rate below what you would have otherwise had without the excellent record.  But when your mod increases to numbers above 1.0, then you are paying an more for your workers compensation policy due to your past claims experience.  Experience mods are calculated based on the frequency and severity of claims.  So if you can avoid severe losses and reduce the amount that is paid out, then you can help to keep your experience modification factor lower.  It is an important maxim to remember that money paid out for your workers compensation claims is almost always going to cost you more in premiums later.  So you must do all that you can to reduce and control workers compensation losses.

Here are some important facts to keep in mind.  First, workers compensation insurance companies face the same mult-billion dollar challenges as the Medicare and Medicaid system face when it comes to avoiding fraud and billing errors.  Most workers compensation insurance companies rely solely on computer technology to find and correct billing errors and most do not conduct reviews of modifier 59.   More often than not, they just apply the fee schedule discount and pay the bill without investigating the accuracy of the medical bill.

So what can a business owner do to protect his or her business from intentional and unintentional billing errors that will mean rate increases in the future?  The best plan of action is to carefully select the insurance company you buy your work comp insurance policy from in the first place.   I generally recommend that businesses buy their workers compensation insurance policy from a company that writes workers compensation insurance only.  These specialty companies tend to have lower rates to begin with, but beyond that, since workers compensation claims are the only type that they handle, they generally have a better system for watching for fraud in the billing process.  They also will often provide on staff nurses to manage a case as well as more systematic and careful review of all medical bills.  Thes additional claims services will almost always result in lower claims costs and will generally get your injured employees back to work sooner.  These techniques will not only show up in lower initial rates, but will also help you keep your experience modification factor lower, thus keeping your costs lower over time. 

At Clinard Insurance Group, we are an independent insurance agency that is actively engaged in helping businesses all across North Carolina with their work comp and business insurance.  We can show you how to cut your workers compensation costs dramatically with very little effort on your part.  If you have questions about your business insurance policies, please call us, toll free, at 877-687-7557 or visit us on the web at www.ClinardInsurance.com.

Landscapers Workers Compensation – Summer Brings Seasonal Dangers For Your Employees June 10, 2011

A portion of your workers compensation insurance  rate is determined by the losses that you claim on your policy over time.  High loss frequency or severity will drive up your experience modification factor on your policy and cost you in higher workers comp rates for years to come.  If you want to learn more about how this works, please visit my blog article on protecting your experience modification factor.   For landscapers and lawn care firms, Summer means more work, but also creates some specific risks for your employees.  I’ve put together a few tips for  protecting  your employees from some of these seasonal risks.

Any discussion of summer seasonal risks to landscapers has to begin with heat related illnesses.  You should take the time to be sure  that your crews are prepared for an emergency.  Look out  for symptoms like profuse sweating, skin that is extremely hot or cold to the touch, dizziness or nausea.  Consider going with shorter work schedules and  schedule that start earlier and stop at mid day heat and resume again in the late afternoon.  Provide plenty of cool water (at least 4 cups of water per hour) and make sure that workers have shady places to take their breaks.  Do not wait until an employee feels sick in order to allow them to take a break. 

Another summer seasonal risk to your landscaping workers is snakes.  Warn everyone to be careful  where they place their hands and feet when moving debris.  Require everyone to always wear gloves when moving debris about and advise them not reach blindly under debris when moving it.  Boots should be worn by all employees and they should be at least 10 inches high.   If someone encounters a snake, have them step back and allow it to proceed.  A snake’s striking distance is usually ½ the total length of the snake.  If someone is bitten, note the color and shape of the snake’s head.  Keep bite victims still and calm to slow the spread of any venom in case the snake is poisonous.  Do not cut the wound or attempt to suck the venom out, lay the victim down so that the bite is below the level of their heart and cover the bite with a clean, dry dressing.

Insects can also be a danger.  Find out  in advance if any of your employees are allergic to any insect bites or stings and if so, you be sure to keep the appropriate medicines available to them at all times out on job sites.  Severe reactions to bites or stings such as chest pain, nausea, loss of breath, sweating or slurred speech require immediate medical treatment.

Your landscaping workers may also face exposure to herbicides and pesticides.  Make sure that anyone engaged in using these chemicals is fully trained and understands exactly what to do in case of overexposure. 

Taking precautions with your employees during the summer months should help you avoid some injuries and reduce the costs of  those that were unavoidable.  Employee downtime and higher workers compensation rates are not an enjoyable way to spend your profits.  At Clinard Insurance Group, in Winston Salem, NC, we insure dozens of landscaping companies all across North Carolina.  Our specialize landscapers insurance program can help you save money while getting the protection you need  on your general liability insurance, the insurance on your trucks and your equipment as well as your workers compensation insurance.  Give us a toll free call today at 877-687-7557 or visit us on the web at www.LowRatesForLandscapers.com.

Workers Compensation Insurance – When It Comes To Claims, Time is Money March 24, 2011

The old adage that time is money is certainly true when it comes to handling workers compensation claims.  While the Form 19 claims form no longer states that the claim must be filed within 5 days of the accident or injury occurrence, moving fast on a workers compensation claim has a big impact on the size of the claim and the subsequent loss costs that will affect the employer.  If you are an employer with employees and have a workers compensation policy, you should take a little bit of time before a claim happens to discuss with your agent what you will need to do to move the claim forward quickly.

Take a quick look at some insurance industry statistics related to the speed of claims reporting. 

Claims reported two weeks after the occurrence had an 18% higher payout than claims reported in the first week.

Claims reported three weeks after the injury had a 47% increase in total loss costs over those reported in the first week.

And to drill down further, claims reported in days 5 through 7 after the occurrence had a larger claim cost than those reported in days 1 through 4.

Claims reported with only a 3 day delay had an increased medical cost of 16% over those reported on the day of the occurrence.

And we can also see this trend in terms of litigation costs associated with late reporting of workers compensation claims.  Claims with a only a 3 day delay in reporting have a 50% greater chance of ending up in litigation.  And litigation will increase the total costs of the claims and drive up your workers compensation premiums over time.  To see how claims costs affect your premiums, click here.

So how does quicker reporting help to reduce the costs of a workers compensation claim?  First of all, it allows the insurance company to contact all parties involved more quickly and this reduces the costs and chances of litigation.  Once the injured worker has hired an attorney to represent him, then the claims process slows down considerably as the communication process now has another step involved.  Quick claim reporting also allows the insurance company to get involved with the injured worker sooner and begin to develop plans to get the injured worker back to work in a shorter time.  This not only reduces the costs of your future workers compensation claims, but it also cuts your downtime costs right away.

Last of all, consider that the longer the employee is out of work, the greater the burden on other co- workers in your company.  This negative impact can hurt morale and can also lead to a higher risk of injury to the remaining workers on the job.  In addition, hiring and training a temporary replacement worker can be very expensive.

At Clinard Insurance Group, in Winston Salem, NC  we want all insurance buyers to be informed consumers.  Looking only at the policy costs can be a deceiving way to purchase insurance and might leave your company out in the cold.  If we can help you with your business insurance, your workers compensation insurance, your general liability insurance, commercial auto insurance or life insurance, please call us, toll free at 877-687-7557 or visit us on the web at www.ClinardInsurance.com.

The source information for this article was pulled from other articles that can be found in their entirety at www.InsuranceAnswerGuy.com.

Social Media Becomes a Tool In The Fight To Reduce Insurance Fraud September 18, 2010

A young man brags on facebook about sinking his car in a lake before he reported it stolen.  A carpentry company creates a promotional video for youtube which shows their workers installing roofing material.  Another youtube video shows people ramming a van into a tree over and over again.  You can even view some stage accident videos by NICB here.   For some reason, people just don’t think that social media is a tool that insurance claims adjusters can use.

Studies indicate that at least 10% and perhaps more of all property and casualty insurance claims are fraudulent.  The National Insurance Crime Bureau estimates that workers compensation fraud alone costs as much as $5 billion per year.  This cost is added into so many of the products that you and I purchase every day.  But fraud has a new enemy now and it is called Social Media.   The social media sites like youtube, twitter, facebook and others are a great place for claims adjusters to spend time checking up on their claimants.  And underwriters use them as well.  In the case of the carpenter showing his employees working on a roof, he now has some explaining to do to his underwriter since he signed an application indicating that he does not engage in any roofing activities.

It is surprising how people are willing to incriminate themselves on these social media sites.  Underwriters are now better able to identify the types of customers who are prone to fraud by studying their social media and internet footprints before they agree to write a policy for them.  And of course today’s claims adjuster is finding the social media universe to be easy pickings for proving fraudulent behavior on some claims.

Over time, the fraudsters out there will be a bit smarter and in truth, social media is not the place to catch the real professional crook.  But it is having an impact on helping to keep your insurance rates just a bit lower over the near term.

At Clinard Insurance Group in Winston Salem, NC, we work hard to help insurance consumers out there become better informed buyers.  If we can help you with your home insurance, your auto insurance, your business insurance or even your life insurance, I hope you will call us, toll free, at 877-687-7557 or visit us on the web at www.ClinardInsurance.com
The source information for this article was pulled from other articles which can be found in their entirety at www.InsuranceAnswerGuy.com.

Workers Comp Back To Work Issues – Avoid These Common Mistakes August 31, 2010

Workers compensation insurance is a necessary evil for most employers.  How you handle on the job injuries and more importantly how you handle the out of work situations that you will face with your employees will go a long way toward impacting your future workers compensation costs.  Read below to see some common mistakes that some employers make in this regard and what you can do as an employer to avoid these mistakes and minimize your future workers compensations costs.

The first step towards understanding back to work issues is to understand why it is important for you to be involved.  Some employers take the attitude that the claim has been filed and it is the insurance company’s money now so why worry about it.  This belief couldn’t be farther from the truth.  This is in fact your money as your future rates are determined by today’s claims experience.  And to make matters worse, you will pay over a 3 year period for any one year’s mistakes to the impact is essentially tripled.  Click here to read my blog about the workers compensation experience modification factor and how it affects your bottom line now and in the future.  Now bear in mind that  workers compensation rules are different for every state but this is a guideline that can help you avoid some common errors that employers often make.

Mistake #1 – The Economy is bad and I can’t afford to keep employees on the job who are not able to do the job.  Actually, you can’t afford not to.  Remember, if you are not able to make an offer of light work to an injured employee then your employee will likely continue to receive a good part of their salary as work comp benefits from your insurance company while contributing nothing to your company.  Other employees will have to pick up the slack or you may have to hire and train new workers.  Research shows that healing happens faster for employees who are productive and that a transitional duty program can get them back to work quicker and save you more money in the long run.

Mistake #2 – My injured employee wasn’t all that productive before the injury so I’d rather not keep him on with light duty now that he is injured.  Don’t fall into this trap.  Dealing with non-productive employees is a human resource issue, not a workers compensation issue.  You should always deal with this type of problem through your HR department.  Also, a less productive employee is more likely to take a case through the long and costly workers compensation legal system.  Get them healthy and back to work first, and then deal with their lack of productivity.

Mistake #3 – I don’t think my employee is hurt as bad as he says, in fact I saw him out fishing last week.  This is an example where the insurance company you choose can help or hurt you.  You are often best served by a dedicated workers compensation company with a structured back to work program.   One of  the insurance companies that we use, Summit Insurance Group, has a back to work tool kit and structured back to work program to help you as an employer get your injured employees back to work and off the work comp rocking chair paycheck as quickly as possible.  This is not something you should tackle on your own and you need an insurance company that is dedicated to this process so that your premiums stay low in the future.

Mistake (Concern type)  #4 –  My employees doctor says she should stay at home but she just has a desk job.  You should work with your claim adjuster and your employee to make sure that the doctor has a clear understanding of the job requirements to see if the person really must be written out of work.  Constant and clear communications between you, the employee, the doctor and the claims department can help you resolve these issues and some job modifications may make it possible to get your employee back to work sooner.  Remember to get your employees job description to their physician as quickly as possible and ask for any medical restrictions that need to apply to any transitional duty.

Mistake #5  Losing touch with workers once they are injured increases the fear of a lawsuit.   This is true and many employers find themselves in a nether world where they are afraid to contact their injured employee and wanting to know what is going on with the injury.  This is why having a back to work program in place before the injury occurs is so important.  A good back to work program will encourage you to reach out to your injured employee and help you know what you can and can’t say and how to say it.  They even include greeting cards that you may want to send to let your injured employee know that you are thinking of them.

It is clear that having a plan for injured workers before they are hurt will help you make the transitions more smooth and over time will reduce your workers compensation costs tremendously.  You should choose an agent who understands workers compensation insurance well and can help you gain access to specialized workers compensation insurance companies with back to work plans, dedicated claims staff and even nurses on call, all of which will help you reduce downtime and out of work time for your employees.  Don’t just chase the lowest priced workers compensation rates, rather consider carefully what support you will have after a claim when choosing your workers compensation agent and company.

At Clinard Insuranc e Group in Winston Salem, NC, we specialize in helping all kinds of  businesses with their workers compensation insurance needs.   Our specialization can help you not only find extremely low rates on your workers compensation insurance, but also will help you minimize claims and out of work time, thus saving you money over the long haul as well.  If you need help or have questions about your North Carolina Workers Compensation Insurance Policy, please call us, toll free, at 877-687-7557 or visit us on the web at www.ClinardInsurance.com.

The source information for this article was pulled from various sources, one of which is www.InsuranceAnswerGuy.com.

Auto Repair Shops Workers Compensation Insurance – Protect Your Mod March 12, 2010

Most automotive repair and body shop owners have at least a general knowledge of workers compensation insurance.  They know that they need it and they know it can cost a lot of money.  But only a few really understand the experience modification factor and what it could mean for their future work comp insurance policy costs.  This little primer will help you understand just how important it is to protect your mod and how to do it.

The experience modification factor of workers compensation policies, referred to as the experience mod or just mod for short, is the insurance industry’s way of assigning higher rates to businesses with poor loss experience and lower rates to those who have had more favorable loss experience.  Each business has its own unique experience modification factor and this factor is applied to the rates on their policy.  For example, if you have had a lot of losses, or perhaps a few large losses, you might find yourself with a mod of say, 1.35.  If this is the case, then your workers compensation insurance policy premium will be adjusted upward by 35% to reflect your bad experience.  Likewise, if your company hasn’t has a work comp loss for several years, your mod might drop as low as .80 and this would mean a 20% reduction in your overall workers compensation policy premium.

So how is this mod calculated?  Well, the first thing you need to know is that the mod is calculated based on past experience.  That means what happens today will take several years to come back and bite you.  Also, the experience period for the mod in North Carolina is 3 years, so once you get some losses in your mod calculation, they will stay there  for a while.  I want to leave a more detailed explanation of how the mod is calculated to a later blog, but for now, understand that it is not only the number of losses (called frequency) that plays a part, but also the amount paid out (called severity) that impacts the mod calculation.  And a little of both, frequency and severity can really run up your mod.

So what can you, as a business owner, do to protect your mod?  A lot of how your mod will affect you, both good or bad will be determined by which insurance company you choose for your workers compensation policy.  I say this, because, although you may be as careful as you can to avoid injuries among your workers, there is no substitute for an insurance company that is actively working for you to help you prevent claims and reduce the severity of existing claims.  So when evaluating which workers compensation policy to purchase, you should consider more than just the cost on the first policy.  Find out what that insurance company and that agent are going to do to keep your costs low over the long term.

Choose a workers compensation insurance company that will work with you to help you with both prevention and severity reduction.   Prevention can come in the form of safety inspections, and loss control techniques that the insurance company can share with you.  Reduction can come in the form of programs that help your injured workers get back to work more quickly.  Some of the best workers compensation insurance companies even have their own nurses and doctors.  Also, you want to purchase your workers comp coverage from a company that assigns case managers to each claim to stay on top of all the medical bills and the disability payments to keep the payout as small as possible.

At Clinard Insurance Group, in Winston Salem, NC, we specialize in helping the owners of automotive repair and body shops navigate the complex waters of insurance policy and insurance company selection.  We can help you find a pro-active insurance company that will help you reduce the number of work comp claims and keep the claims that happen from spiraling out of control.  We can also help you with your other insurance needs from garage insurance to commercial auto insurance for your wreckers or company trucks.  If you would like help with any of your business insurance needs, please call us, toll free, at 877-687-7557 or visit our garage owners insurance help page.

The source information for this article was taken from other articles which can be found in their entirety at www.InsuranceAnswerGuy.com.

Contractors Workers Compensation Insurance – Protect Your Mod February 2, 2010

Most contractors have at least a general knowledge of workers compensation insurance.  They know that they need it and they know it can cost a lot of money.  But only a few really understand the experience modification factor and what it could mean for their future construction company insurance policy costs.  This little primer will help you understand just how important it is to protect your mod and how to do it.

The experience modification factor of workers compensation policies, referred to as the experience mod or just mod for short, is the insurance industry’s way of assigning higher rates to businesses with poor loss experience and lower rates to those who have had more favorable loss experience.  Each business has its own unique experience modification factor and this factor is applied to the rates on their policy.  For example, if you have had a lot of losses, or perhaps a few large losses, you might find yourself with a mod of say, 1.35.  If this is the case, then your workers compensation insurance policy premium will be adjusted upward by 35% to reflect your bad experience.  Likewise, if your company hasn’t has a work comp loss for several years, your mod might drop as low as .80 and this would mean a 20% reduction in your overall workers compensation policy premium.

So how is this mod calculated?  Well, the first thing you need to know is that the mod is calculated based on past experience.  That means what happens today will take several years to come back and bite you.  Also, the experience period for the mod in North Carolina is 3 years, so once you get some losses in your mod calculation, they will stay there  for a while.  I want to leave a more detailed explanation of how the mod is calculated to a later blog, but for now, understand that it is not only the number of losses (called frequency) that plays a part, but also the amount paid out (called severity) that impacts the mod calculation.  And a little of both, frequency and severity can really run up your mod.

So what can you, as a business owner, do to protect your mod?  A lot of how your mod will affect you, both good or bad will be determined by which insurance company you choose for your workers compensation policy.  I say this, because, although you may be as careful as you can to avoid injuries among your workers, there is no substitute for an insurance company that is actively working for you to help you prevent claims and reduce the severity of existing claims.  So when evaluating which workers compensation policy to purchase, you should consider more than just the premium on the first policy.  Find out what that insurance company and that agent are going to do to keep your costs low over the long term.

Choose a workers compensation insurance company that will work with you to help you with both prevention and severity reduction.   Prevention can come in the form of safety inspections, and loss control techniques that the insurance company can share with you.  Reduction can come in the form of programs that help your injured workers get back to work more quickly.  Some of the best workers compensation insurance companies even have their own nurses and doctors.  Also, you want to purchase your workers comp coverage from a company that assigns case managers to each claim to stay on top of all the medical bills and the disability payments to keep the payout as small as possible.

At Clinard Insurance Group, in Winston Salem, NC, we specialize in helping the owners of small contracting companies navigate the complex waters of insurance policy and insurance company selection.  We can help you find a pro-active insurance company that will help you reduce the number of work comp claims and keep the claims that happen from spiraling out of control.  Because contractors insurance is our specialty, we can help you with your insurance needs whether you need help with carpentry insurance, carpet cleaner insurance, electricians insurance, flooring insurance, HVAC insurance, grading and excavating insurance, insulation insurance, landscaping or lawn care insurance, masonry insurance, painters insurance, plumbers insurance, siding insurance or  even guttering insurance .  We have built special niche programs for many different types of contractors and we encourage you to call us, toll free, at 877-687-7557 or visit us on the web at  www.TheContractorsHelper.com. 

The source information for this article was taken from other articles which can be found in their entirety at www.InsuranceAnswerGuy.com.