A Question From One of Our Blog Readers - What is the one thing that I can do to quickly reduce my Workers Comp premiums?

I wish there was a quick-fix for paying less Workers Compensation premiums. There is a one-year lag time between anything a company does today and those actions affecting the E-Mod. Taking actions today is a start, but it needs to be a long-term goal. An action plan has to be put in place ASAP and then followed for three years to really have an effect on the E-Mod.

As I have mentioned in prior blogs, the first thing to do is to quit writing Workers Comp premiums checks without understanding the premium bill. If it is a bill from the initial policy, then review every page of the policy and ask questions. If the premium bill is from a Workers Comp audit, then make sure it is accurate. If there are any questions about the Workers Comp policy or audit, there is a time limitation for disputing the premium bill. Most of our initial contacts from employers are due to "Something just does not seem right - a gut feeling."

The bottom line is to not just write a check and consider it an overhead or fixed cost. Workers Comp is a variable cost. One of our favorite sayings is "Stop writing checks and ask questions." If you do not feel comfortable, do not hesitate to bring in a premium, reserve, or claims expert. It will almost always prove to be money very well spent.

I blogged "Red Flags That You May be Overpaying for Workers Comp" a few weeks ago. Check that one out. If you ever have any questions, please feel free to email me at jmoore@cutcompcosts.com or call us.

Up Next - Back to North Dakota's Workers Comp Conundrum