When Do We Usually Hear From Companies?

This is a question that was posed to me at a recent conference. Surprisingly, the 80/20 rule applies here. 80% of the companies that contact us have just renewed or are going to renew their Workers Compensation policies within the next few days. 20% contact us at other times during their Work Comp policy year.

If you have just renewed a policy and we find errors in your Work Comp policies, your company would likely lose one year of refunds. There is a three year "look-back" for premium recoveries. If we are contacted on January 15 on a January 1 renewal, the third year that is furthermost in the past may be lost. We recently had a small trucking company lose the third year of refunds which were worth about $30,000 to the company.

The best time to contact us is three months before your policy expires. That gives us time to do a very thorough premium review. If you want us to do a reserve review, then we need to start three months after your policy renews.

Do not get me wrong, we are always glad to hear from companies that need our help on their Workers Compensation policies. We just hate to see a company miss out on recoverable funds, especially in this economy.

Next Up - How do Premium and Reserve reviews differ? (Hint - night and day difference)