The Big Workers Comp Gamble

A question from one of our blog readers - I received my Workers Comp policy run. How do I review the loss runs? If I find something that I disagree with on the loss runs, what do I do to get the mistake corrected?

In going along with the blog title, this is an area where a few employers can actually do more harm than good. As I mentioned in a previous blog, there are a few things that cannot be accomplished in a claims review. Any monies spent and any reserves on old policies cannot be questioned, except for the reserves on the current policy + the 180 day window mentioned in one of my recent posts.

A Few Ways to COST your company premiums are:

• Calling up the claims adjuster or supervisor and just saying "My reserves are too high, fix them" will fall on deaf ears.
• Not all files need to be reviewed. In fact, reviewing certain files may COST more premiums than if the file was never reviewed.
• The location of the file review, depending on the insurance company
• The method of the file review
• Who attends the file review
• The preparation by the employer is very important. "Shooting from the hip" can be disastrous in a reserve review.

To keep these blogs from being too boring, I will cover some of the above bullets over the next week instead of going over all of them in this post.