CompControl : The Secrets of Reducing Workers' Compensation Costs

by Priz, Edward J.; Doyle, Kathleen

• ISBN13: 9781555715564
• ISBN10: 1555715567
• Edition: 2nd
• Format: Paperback
• Copyright: 2005-04-01
• Publisher: Entrepreneur Pr

Summary

>CompControl is a hands-on guide to help improve the bottom line of any company. Mr. Priz's step-by-step directions show the potential and actual overcharges on Workers Compensation insurance. Readers will also learn how to secure the best policy and insurance team to fit their needs. This book is divided into ten chapters. Each discusses a different aspect of buying, using, deciphering, and controlling your worker's compensation insurance plan. Throughout the book, Mr. Priz advises familiarity with the state's Workers Compensation policies and regulations. Workers' Compensation offers a complex of more than 600 workplace classifications. Only a handful, at most, are appropriate for a particular workplace. Mistakes in classifications and other key factors are common to illustrate the typical pitfalls; the author presents 24 case studies from his experiences as an advocate for his clients, Each study details and the problems the company encountered with this system. Reasing these carefully may help evaluate a company's situation in the many potential areas of conflict.

Author Biography

Edward J. Priz has found and recovered more than $4 million in Workers' Compensation premium overcharges for client companies. Now an insurance expert and consultant, he has spent many years inside the insurance business learning how the system actually works. An active member of many professional organizations, Mr. Priz serves on the Workers' Compensation committee of the Illinois Manufacturers' Association. He has conducted seminars on Workers' Compensation insurance for Caterpillar, Inc., the central Illinois Employers' Association, the Greater Missouri Contractors Association, Greater Peoria Contractors' and Suppliers' Association, the Illinois Manufacturers' Association, and other groups. Mr. Priz writes and lectures widely in the subject of Workers' Compensation cost control.

Table of Contents

About the Author	ix
Preface	xi
How to Use this Book	xiii
Know How the System Works	1	(8)
Workers' Compensation
How States Differ
New Alternatives
Who Needs Workers' Compensation?
Different Approaches
Determine Your State's Rules
How Your Policy Is Computed	9	(8)
The Declaration Page
Assigned Risk Pool
Your Workplace Classifications	17	(8)
Know Your Rating Bureau
The Governing Classification
More Than 600 Classifications
Classification by Analogy
How Your Classification Can Be Wrong
How to Know if Your Classification Is Right
The Scopes Manual
How to Classify Temporary Employees	25	(4)
The Legal Employer
System Abuse
Avoid Unscrupulous Companies
How to Correct a Misclassification	29	(28)
No Inspection Report
How Do You Correct Your Policy?
How Classifications Are Decided
Obtain a Copy of Your Report
Being Ready for an Inspection
Know the Key Questions
Review Your Work
Another Kind of Classification Problem
Flexibility for Contractors
Subcontractors
The 12 Non-NCCI States
How Independent States Differ from NCCI States
Key Points to Remember
Make Your Experience Pay	57	(20)
The Experience Modification Factor
Expected Losses
Primary Losses
Review Your Worksheet
The Left Side of the Worksheet
The Reciprocal Effect
Modifier Changes
The Right Side of the Worksheet
Loss Reserves
Loss Information
Claims Information
Reimbursement by a Third Party
The Injury Code
Other Problems with Modifiers
Changes in Ownership
Combining Data
Check Your Modifier
Finding Help
Get Active with Your Annual Audit	77	(16)
Keep Your Audit on Premises
Explain Your Operations
Check Your Workpapers
Independent Contractors
Overtime Adjustment
Your Payroll Records
Classification Changes
Premium Audits
Complain in Writing
Get Involved
Shop Around for the Best Policy	93	(14)
Exercise Control Over Insurance Quotes
What to Look for in a Proposal
Types of Loss-Sensitive Policies
Sliding-Scale Dividend Plans
Retro Plans
Retention Plans
High-Low Plans
Other Factors
Define Loss
Choose Your Agent and Insurer	107	(24)
Which Kind of Insurer Is Best?
Audits, Agents, and Insurers
Before Choosing an Insurer
The Importance of Insurers' Financial Ratings
Choosing an Agent
Evaluate the Agency
Examine the Consultant
Use Competition to Lower Premiums
When to Call in Reinforcements
Key Points to Remember
Achieving CompControl --- Other Methods	131	(20)
Safety Group Programs
Group Self-Insurance Plans
Self-Insurance
Large Deductible Plans
Carve-Out Programs
Small Deductible Plans
Synthetic Plans
ERISA Plans
Considerations When Choosing a Plan
Managing Your Claims
Keep Claims Costs Down
Work with Your Injured Employees
Reducing Fraud
Premeditated Fraud
Managed Care Programs
24-Hour Coverage
Other Reforms
Take Action Now
Appendix A: State Insurance Departments	151	(4)
Appendix B: Rating Bureaus by State	155	(4)
Index	159