Workers' Compensation Audits
Getting the money back where it belongs...in your bottom line.
Premium Recovery at NO cost to your company. You only pay for results.
Workers’ compensation insurance is many companies’ single largest insurance burden. There are many factors that affect the cost of the policy including over 700 classification codes, numerous payroll credits, loss history, experience modification factors, discounts, assessments and more. Premium rates may exceed tens and even hundreds of thousands of dollars. The smallest of errors can substantially impact the premiums you pay...forever.
Accuaudit & Recovery is dedicated to helping your company save money by uncovering the hidden errors that lead to increased premiums. In fact, we are so confident in our ability to save you money that our fee is directly tied to the result. We do not get paid unless we generate savings.
Accuaudit & Recovery is the premier workers’ compensation auditing firm. Our team of professionals review each workers' compensation account to uncover hidden errors. As insurance manuals vary by State and require professional interpretation, it is the extensive experience of each member of our team and not any “software program” that makes our company unique. You get hands-on professionals performing your audit for the maximum results.
The Accuaudit & Recovery team has recovered in excess of $80,000,000 in premium overcharges for our clients nationwide. Our partners combined 25 plus years of auditing, classification analysis and experience mod review make us true experts in the industry.
We will identify errors and overpayments in workers’ compensation premium audits and policy calculations going back as many as 3 years more than 85 percent of the time. The entire service is performed remotely, so there is no need for us to disrupt your operation with an onsite audit. The refund is always sent directly to you which makes our service totally risk free.
The fee for our services is a percentage
of the refund or credit paid to you by your carrier.
If there is no refund, there is no fee!
What information do you require?
To conduct the payroll audit we require the same payroll information that you supply to the carrier’s auditor (spreadsheet, master controls etc.), audit bills and the worksheets (from the carrier’s annual audits) for all years to be reviewed (typically the three most recently closed policies).
If you do not have the paperwork on hand, the carrier has copies, which can be easily obtained by us.
Who gets the refund check from the carrier?
Your carrier will always send the credits or checks directly to you or your broker. The broker receives the refunds when your premiums were paid to the broker as opposed to directly to the carrier. In these cases, the broker must forward the refund or apply the credit to your account. We typically recover between 12% to 14% of the total premiums. This can be quite a large sum when you look at the prior years’ premiums and the future savings.
How much of my time is going to be diverted from other tasks?
Little of your time is required. The audit is done remotely, from our office with all communication by phone/email. We assist in gathering any paperwork. A brief telephone conversation is needed to understand your operations. The experience and reserve review is also conducted at our offices and completely invisible to you (simply sign a release for the data we require).
We have our workers compensation under control, what could be wrong?
Most of our clients think that they have the workers compensation under control. It is important to recognize that the carrier and auditor may commit the errors. The carrier’s auditor is typically at the office for only 1 or 2 hours to confirm the estimated payroll versus the actual. The payroll, in most companies is segregated by department. This can lead to errors at the time of audit. Additionally, the carrier and the rating board frequently make mistakes in the experience ratings.
Will our carrier drop us for requesting a refund?
The carriers will work with you because they wish to maintain the relationship and keep you. Even if you are no longer insured with a carrier, they may attempt to secure your business in the future. Our relationship with the carrier is very important to us, too. We work very hard to maintain a good working relationship with the carriers. What we do is simply part of their normal business process. Part of our success comes from the years of experience and contacts we have with many carriers - you benefit from these relationships.
We change carriers every year, is that going to be a problem?
Believe it or not most of our clients have multiple carriers over the audit period. Due to the expensive nature of workers compensation it is typically put to bid annually. The audit process is subject to error and the carriers are aware of that fact. They want to have the correct information and charge the correct premium to the insured. We are able to recover premiums going back over three years, so our work will often involve more than one carrier - we are used to this.
My broker works very closely with us on the workers compensation policy. How is it you can help?
Brokers that do get very involved in the workers compensation programs typically monitor claims activity. This can make our service more valuable, because the more activity in the way of adjustments the greater the likelihood of an error in the modification calculations. The payroll audit aspect of our service is an area that 99.9% of all brokers do not get involved with at all. In fact, many brokers send a letter to the insured asking them to carefully review the audit because they have no way to verify its accuracy.
We are very concerned with the confidential nature of the information involved. Will you share it with anyone?
That is a very important priority to us, too! We want you to feel comfortable and confident. We have a confidentiality clause in our agreement and will be happy to sign a separate agreement if you wish. We do not sell your information to third parties; your only contact will be with AccuAudit & Recovery Partners and its affiliated companies.
What about our dividends, premium adjustments that result from Retros or the annual audit?
First, dividends are not subject to our fees unless we increase them as a direct result of our work. The same would apply to Retro adjustments or return premiums resulting from an overestimate of payrolls. Our fees are only attached to savings we produce.